From AAIA AutoFacts
WASHINGTON — The Internal Revenue Service (IRS) issued proposed (REG-152549-03) and final and temporary regulations (T.D. 9146) that generally let small business taxpayers elect to deduct up to $100,000 of certain tangible property and computer software. The election applies to qualifying property purchased and placed in service in a taxable year beginning after 2002 and before 2006, reflecting changes made by the Jobs and Growth Tax Relief Reconciliation Act of 2003, the Treasury Department said in a news release.
Prior to the 2003 act, a taxpayer with a sufficiently small amount of current year investment in Internal Revenue Code Section 179 tangible personal property purchased for use in the active conduct of a trade or business, could elect to deduct up to $25,000 of the qualifying property placed in service, IRS explained. The $25,000 was reduced by the amount by which the cost of Section 179 property placed in service during the year exceeded $200,000, the rules said. The final and temporary regulations were effective Aug. 4. In addition, the IRS said it will hold a hearing on the rules Nov. 30.
Click here to view the rest of today’s headlines.