[Anonymous]

I’m scheduled to take the test on 1/25. What limitation should I memorize?

Expense up to $500,000 and reduce it $ for $ over $2,000,000, not available if exceeds $2,500,000

OR

The $250,000 limitation……

Thanks!!!

[Anonymous]

I'm not sure what $250,000 limit you are talking about. 2012 was supposed to be $139,000 to expense and then 2013 was set to go down to $25,000. The recent legislation extended the current rates through to tax year 2013 of the $500,000 and phaseout begins at $2M. This is off the top of my head but I'm almost certain it's correct – as I'm a tax accountant and also in charge of all tax research at my office (not by choice!)

[Author]

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