Sec. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; CERTAIN REAL PROPERTY TREATED AS SECTION 179 PROPERTY
915 words·~4 min read·
/statute-compilations/comps-9466/sec-2021A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
## SEC. 2021 INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; CERTAIN REAL PROPERTY TREATED AS SECTION 179 PROPERTY ###
(a)Increased Limitations Subsection
(b)of section 179 of the Internal Revenue Code of 1986 is amended— ####
(1)by striking “ shall not exceed ” and all that follows in paragraph
(1)and inserting > “shall not exceed— > > > ##### “(A) > > $250,000 in the case of taxable years beginning after 2007 and before 2010, > > > ##### “(B) > > $500,000 in the case of taxable years beginning in 2010 or 2011, and > > > ##### “(C) > > $25,000 in the case of taxable years beginning after 2011.” > , and ####
(2)by striking “ exceeds ” and all that follows in paragraph
(2)and inserting > “exceeds— > > > ##### “(A) > > $800,000 in the case of taxable years beginning after 2007 and before 2010, > > > ##### “(B) > > $2,000,000 in the case of taxable years beginning in 2010 or 2011, and > > > ##### “(C) > > $200,000 in the case of taxable years beginning after 2011.” > . ###
(b)Inclusion of Certain Real Property Section 179 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: > > ### “(f) Special Rules for Qualified Real Property > > > #### “(1) In general > > If a taxpayer elects the application of this subsection for any taxable year beginning in 2010 or 2011, the term ‘section 179 property’ shall include any qualified real property which is— > > > ##### “(A) > > of a character subject to an allowance for depreciation, > > > ##### “(B) > > acquired by purchase for use in the active conduct of a trade or business, and > > > ##### “(C) > > not described in the last sentence of subsection (d)(1). > > > #### “(2) Qualified real property > > For purposes of this subsection, the term ‘qualified real property’ means— > > > ##### “(A) > > qualified leasehold improvement property described in section 168(e)(6), > > > ##### “(B) > > qualified restaurant property described in section 168(e)(7) (without regard to the dates specified in subparagraph (A)(i) thereof), and > > > ##### “(C) > > qualified retail improvement property described in section 168(e)(8) (without regard to subparagraph
(E)thereof). > > > #### “(3) Limitation > > For purposes of applying the limitation under subsection (b)(1)(B), not more than $250,000 of the aggregate cost which is taken into account under subsection
(a)for any taxable year may be attributable to qualified real property. > > > #### “(4) Carryover limitation > > > ##### “(A) In general > > Notwithstanding subsection (b)(3)(B), no amount attributable to qualified real property may be carried over to a taxable year beginning after 2011. > > > ##### “(B) Treatment of disallowed amounts > > Except as provided in subparagraph (C), to the extent that any amount is not allowed to be carried over to a taxable year beginning after 2011 by reason of subparagraph (A), this title shall be applied as if no election under this section had been made with respect to such amount. > > > ##### “(C) Amounts carried over from 2010 > > If subparagraph
(B)applies to any amount (or portion of an amount) which is carried over from a taxable year other than the taxpayer’s last taxable year beginning in 2011, such amount (or portion of an amount) shall be treated for purposes of this title as attributable to property placed in service on the first day of the taxpayer’s last taxable year beginning in 2011. > > > ##### “(D) Allocation of amounts > > For purposes of applying this paragraph and subsection (b)(3)(B) to any taxable year, the amount which is disallowed under subsection (b)(3)(A) for such taxable year which is attributed to qualified real property shall be the amount which bears the same ratio to the total amount so disallowed as— > > > ###### “(i) > > the aggregate amount attributable to qualified real property placed in service during such taxable year, increased by the portion of any amount carried over to such taxable year from a prior taxable year which is attributable to such property, bears to > > > ###### “(ii) > > the total amount of section 179 property placed in service during such taxable year, increased by the aggregate amount carried over to such taxable year from any prior taxable year. > > For purposes of the preceding sentence, only section 179 property with respect to which an election was made under subsection (c)(1) (determined without regard to subparagraph
(B)of this paragraph) shall be taken into account.” > . ###
(c)Revocability of Election Paragraph
(2)of section 179(c) of the Internal Revenue Code of 1986 is amended by striking “2011” and inserting “2012”. ###
(d)Computer Software Treated as 179 Property Clause
(ii)of section 179(d)(1)(A) is amended by striking “2011” and inserting “2012”. ###
(e)Effective Dates ####
(1)In general Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2009, in taxable years beginning after such date. ####
(2)Extensions The amendments made by subsections
(c)and
(d)shall apply to taxable years beginning after December 31, 2010.