[mvillas]

In the wiley book, it says the max amount that can be expensed under 179 is $250,000 and is reduced by the amount that the cost of the property exceeds $800,000. Now, in the wiley book it says that is for 2009 and 2010.

On the IRS website, I just read that those numbers have changed, beginning in 2010 to $500,000 and $2 million, respectively.

does anyone have any insight on to which numbers to use for the exam? I go in for REG on Monday.

This is the address for the IRS page I am referring too: https://www.irs.gov/formspubs/article/0,,id=177054,00.html

Thanks for any help you my have/

[steves]

2011 Becker goes along with Wiley. $250,000 and is reduced by the amount that the cost of the property exceeds $800,000.

[jaime.usey]

Becker's update:

The tax law was updated subsequent to the publication of this textbook. The rules that are included in the textbook are the rules that were in effect for 2010 and 2011 and forward prior to the passing of the new law. Item C.1. should be change to read:

1. 2010-2011 Rules

The limit is $500,000 of new or used property that is acquired from an unrelated party during the year.

a. The maximum amount is reduced dollar for dollar by the amount of the property placed in service during the taxable year that exceeds $2,000,000.

**Note that the expensing election does not include qualified real property for 2010 and 2011.

**Note that the expensing election includes off-the-shelf computer software through the year 2011.

A.

[mosquito]

Yes, but what is the EXAM using?

[Anonymous]

I would say the new section 179 expense rules would be tested, so its $500,000 limit, then reduced dollar by dollar in excess of $2,000,000

From the AICPA website:

What are the rules regarding new accounting and auditing pronouncements?

For the federal taxation area, the Internal Revenue Code and federal tax regulations in effect six months before the beginning of the current window may be tested.

For all other subjects covered in the Regulation (REG) and Business Environment and Concepts (BEC) sections, materials eligible to be tested include federal laws in the window beginning six months after their effective date, and uniform acts in the window beginning one year after their adoption by a simple majority of the jurisdictions.

[32CPA]

Hint: they can test you under the limitation… like:

X company had $100,000 in purchases during the year and their taxable income is under the thresholds. How much of these purchases can be expensed in the current year?

I'm not saying I was tested this way, but it'd be a way to test Sec 179 expense while not specifying the limitations.

BEC - Pass 10/2010
FAR - Pass 10/2010
AUD - Pass 11/2010
REG - Pass 05/2011

[Author]

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