[Anonymous]

Would this be on the exam? I had a practice question about Section 179 in regards to real property.

I thought the 179 deduction was only on personal depreciable property used in a business with a limit of $500k on new/used equipment of up to $2M.

This question states that real property is subject to a limit of $250k but was only applicable prior to 2012 and is not in effect for 2012.

Should we worry about this for the 2012 exam? I’ve thought about it enough to remember it anyway 🙂

[NoOrigins]

CPAExcel had different numbers than that, lol. I had a max of $139,000 with phaseouts dollar for dollar at $560,000. Based on my experience today, I would advise you not to overlook anything. Know that a phaseout exists and what type it is (dollar for dollar, proportional over a range, a flat % over a threshold) should be sufficient. From doing tons of practice questions and taking the test, they tend to provide you with numbers to use if it's something changes frequently, or give you a taxpayer where their AGI is so low or so high above any of the potential thresholds, it'll be obvious.

That being said, if you can get it in your head, do it. The worst that can happen is that they'll tell you to use a different number than the one you memorized.

FAR: Passed
REG: Passed
BEC: Passed
AUD: Passed

[Author]

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