I’m sure other practitioners have had this experience, where a client or someone they meet claims to have heard a certain “tax fact” from a friend of a friend and they tend to believe it more strongly than what those of us who keep up on these thing say. This comes up quite a lot with various rumors about the Section 179 expensing election, such as this recent email. 

Q:

Subject: Section 179: Still going after 2006?

 

I heard that the current level for Section 179 of $108K is dropping back down to $25K after 2006. I have seen on your website otherwise. Is your information up to date on the levels of Section 179 after 2006? Is there a chance that will go away or be reduced in future years?

A:

My figures for the Section 179 are as current as the recently signed tax legislation.

Whoever told you the maximum is dropping after 2006 is working with very old data.

No tax law is immune from meddling by our imperial rulers in DC; so there is no guarantee that the Sec. 179 deduction won't be changed. 

Kerry Kerstetter

Follow-Up:

Thanks so much for your prompt and frank reply.  I guess since there is both old news and more up-to-date news, it is a bit confusing.  Thanks for the clarity...

Labels: 179

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 7/18/2006 10:21:00 AM Send this post: