IRS Code Section 179 Election – Taxable Income Limit

If your taxable income from all of your trades or businesses is less than the dollar limit for that year, the amount for which you can make the IRS Code Section 179 election is limited to that taxable income. However, for most types of property, any amount you can’t immediately deduct because of the taxable income limitation is carried forward and can be deducted in later years (to the extent that the applicable dollar limit, the phaseout rule, and the taxable income limit permit).

Just a note of interest to anyone who has money in a bank account in a foreign country:

Foreign financial accounts must be reported on Form TD F 90-22.1 (FBAR) by any person with a financial interest in or signature authority over the account, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold.

In other words; if you had more than $10,000.00 in a foreign bank account at any time during 2010.  You must file a Form TD F 90-22 by June 30, 2011.  Please feel free to contact our office if you have any questions.

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