sec 179 limit 2014

[gman]

Any news on raising the sec 179 limit for 2014?

[David1980]

If they do anything you can bet it'll be a last minute bill. Right now it's $25,000 (plus some inflation adjustment?) Seems the popular opinion is that congress will do something to it eventually retroactive for 2014 to a higher limit. Right now it seems all congress is doing is putting out bills they know won't pass (including things in the bills that one party would never ever vote for in addition to things the parties would probably agree on.) So probably not til after elections will they do anything productive?

[Bees Knees]

The $25,000 limit is not adjusted for inflation. It will remain at $25,000 forever, unless Congress changes it.

[Bees Knees]

BTW, in addition to the limit going back down from $500,000 to $25,000, computer software is no longer eligible for Section 179 starting in 2014. The ability to revoke a Section 179 election or change the amount elected also went away for the 2014 tax year and beyond.

[Gretel]

179 carry-over

Does this effect a carry-over from prior years? I have a client that has $50,000 in carry-over. Will he loose the remainder over and above the limit?

[Burke]

He shouldn't lose it, but carry forward any amt over the limit for the year the limit applies.

[Ross]

Do you think it will be greater than $25k....

What are your thoughts.....do you think they will extend it or will we be stuck w/ a $25k limit?!?

[JON]

Unless the Prez vetos

the 179 the same as last year: the first year accelerated method may be gone - the Prez has already said he may veto. I believe it is to be heard and hopefully passed out of Congress next week - then the politics start. All this could change!!!!!?????????????

[Burke]

The President will sign the legislation if he gets CTC and EIC extended. He is holding the other provisions hostage dependent on those two being enacted. We will see.......

[David1980]

Doesn't seem like they could even get that past the Senate right now anyway. I do wish refundable tax credits would go away.

[RitaB]

If only

I do wish refundable tax credits would go away.

Yes. This. And the ACA just adds more to the mix.
Sorry, did not mean to sabotage the thread. We need a like button and I wouldn't talk so much.

[Burke]

I don't think CTC & EIC expire this year anyway. They are around through the end of 2017. It's about making them permanent. So we will still have to live with EIC.

[David1980]

I don't think CTC & EIC expire this year anyway. They are around through the end of 2017. It's about making them permanent. So we will still have to live with EIC.

Right. If the Republicans can get things they want made permanent now when 2017 rolls around Democrats wouldn't have as much to negotiate with which is why Democrats oppose making the other things permanent and not these. I expect they'll extend these things temporarily instead and "kick the can" further down the road to figure out later. Maybe with some kind of agreement to "work" on real tax reform that'll fall apart anyway. I still wish refundable tax credits would go away. Pretty much the only way that'll happen is if they "trade" them for something else, but I'd see that as an improvement. Keep them, but administer them through "Department of Free Government Money" and remove them from the tax return. And make DFGM responsible for verifying people actually qualify rather than tax preparers.

[taxea]

I don't think CTC & EIC expire this year anyway. They are around through the end of 2017. It's about making them permanent. So we will still have to live with EIC.

they expire in 2017 which is why Congress isn't dealing with them and Obama is threatening a veto of any bill.

http://www.accountingtoday.com/news/government-news/house-likely-to-revive-tax-breaks-through-2014-lawmaker-says-72883-1.html?utm_campaign=tax%20practice-dec%202%202014&utm_medium=email&utm_source=newsletter&ET=webcpa%3Ae3429227%3A2481921a%3A&st=email