Government Affairs Update-Section 179

Government Affairs Update: December 22, 2014, 10:00 am  uscapitol-washingtondc-picture1

Via: Mark Robinson, Executive Vice President, MDNA

RE: On Friday, December 19, 2014, the President signed into law H.R. 5771  

Per the White House Press Secretary: “On Friday, December 19, 2014, the President signed into law: H.R. 5771, which temporarily extends several expired tax provisions related to individuals, business, and energy through December 31, 2014; and exempts from taxation Achieving a Better Life Experience (ABLE) accounts set up for the benefit of persons with disabilities to assist in maintaining health, independence, and quality of life.”

What this means:

As previously reported this law retroactively expands Section 179 deduction limits thru 12/31/2014. This new law reinstates the limit on Section 179 to $500,000 as well as reinstates 50% Bonus Depreciation.  Effective January 1, 2015 the Section 179 limit reverts back to $25,000 and will remain there unless Congress acts AGAIN!


Government Affairs Update: December 17, 2014, 11:30 am

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Via: Mark Robinson, Executive Vice President, MDNA

RE: What you should tell your customers about the Tax Extenders Bill:

Late Tuesday evening HR.5771 was passed by the Senate having already been approved by the House on December 3rd. Once signed by the President into law (sources indicate he will sign this bill) the law will extend the tax breaks regarding Increased Expensing and Bonus Depreciation that expired in 2013 through December 31, 2014.

  • Through December 31, 2014 the Section 179 Expense Deduction Limit is $500,000
  • 2014 Limit on Capital Purchases = $2 Million
  • 50% “Bonus Depreciation” on qualified assets placed in service during 2014, however Bonus Depreciation does not apply to Used Capital Equipment
  • As always customers should seek advice from their tax advisers

Government Affairs Update: December 17, 2014, 10:00 am

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Via: Mark Robinson, Executive Vice President, MDNA

Late Yesterday H.R.5771, The Tax Increase Prevention Act of 2014 passed the Senate.

Senate Record shows: “Status: Passed Senate, under the order of 12/16/14, having achieved 60 votes in the affirmative, without amendment by Yea-Nay Vote. 76 – 16. Record Vote Number: 364.”


Government Affairs Update 12/16/14.  10:00 am

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Latest Senate Action on H.R.5771 

Via: Mark Robinson, Executive Vice President, MDNA

12/15/2014 Senate floor actions: Motion to proceed to consideration of measure made in Senate.

Late Yesterday Senate Majority Leader Harry Reid indicated that the Tax Extender Bill, H.R.5771, approved earlier this month by the House would be passed by the Senate within “Days” and then sent on to the President.  He indicated that it would likely not be changed as this would send it back to the House.

It cannot be stressed enough that if H.R.5771 is passed by the Senate and signed by the President it is only effective for 2014.  And this issue will have to be addressed all over again next year.

This delay was caused by the Senate taking up and passing a spending bill that averted a Government shutdown and consideration of a series of nominations prior to moving on the Tax Extender Package.


Government Affairs Update 12/12/14

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Via: Mark Robinson, Executive Vice President, MDNA

NAM, our lobbying partner in Washington, D.C. has just informed MDNA that the Senate may vote by the end of today on the Tax Extender bill passed by the House last week and reported to you in the MDNA Biweekly on Tuesday December 9th.

If passed by the Senate and signed by the President this law would ONLY cover the 2014 calendar year.

Currently HR5771 contains the following language regarding Section 179:

EXTENSION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY.

(a) In General-

(1) DOLLAR LIMITATION- Section 179(b)(1) is amended–

(A) by striking `beginning in 2010, 2011, 2012, or 2013′ in subparagraph (B) and inserting `beginning after 2009 and before 2015′, and

(B) by striking `2013′ in subparagraph (C) and inserting `2014′.

(2) REDUCTION IN LIMITATION- Section 179(b)(2) is amended–

(A) by striking `beginning in 2010, 2011, 2012, or 2013′ in subparagraph (B) and inserting `beginning after 2009 and before 2015′, and

(B) by striking `2013′ in subparagraph (C) and inserting `2014′.

(b) Computer Software- Section 179(d)(1)(A)(ii) is amended by striking `2014′ and inserting `2015′.

(c) Election- Section 179(c)(2) is amended by striking `2014′ and inserting `2015′.

(d) Special Rules for Treatment of Qualified Real Property-

(1) IN GENERAL- Section 179(f)(1) is amended by striking `beginning in 2010, 2011, 2012, or 2013′ and inserting `beginning after 2009 and before 2015′.

(2) CARRYOVER LIMITATION-

(A) IN GENERAL- Section 179(f)(4) is amended by striking `2013′ each place it appears and inserting `2014′.

(B) CONFORMING AMENDMENT- The heading of subparagraph (C) of section 179(f)(4) is amended by striking `2011 AND 2012′ and inserting `2011, 2012, AND 2013′.

(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2013.