Section 179 Reminders
For practitioners who are doing last-minute returns for 2018 and for those who are doing tax projections for the 2019 tax year, it is important to keep in mind certain significant changes that have recently been made to the §179 deduction.
For property placed in service after December 31, 2017, the dollar limit is $1,000,000 for 2018, and $1,020,000 for 2019, while the phaseout threshold for the deduction begins at $2,500,000 in 2018 and $2,550,000 in 2019.
In addition, beginning in 2018 the §179 deduction was expanded to include roofs, heating, ventilation and air-conditioning property, fire protection and alarm systems, and security systems. Such items must be installed in nonresidential real property and cannot be part of the original construction of that property.
In order to elect §179, property must be used in a trade or business, and the taxpayer must meet the taxable income limitation.