Question

What is the treatment of a § 179 expensing carryforward? Any § 179 amount in excess of is carried forward to future taxable years and other amounts eligible for expensing. The § 179 amount eligible for expensing in a carryforward year is limited to the of (1) the current statutory dollar amount by the cost of § 179 property placed in service in excess of the appropriate acquisition limit in the carryforward year or (2) the limitation in the carryforward year.

Answer 1

The § 179 amount eligible for expensing in a carryforward year is limited to the lesser of (1) the statutory dollar amount ($500,000 in 2015 and 2014) reduced by the cost of § 179 property placed in service in excess of the appropriate acquisition limit in the carryforward year ($2,000,000 in 2015 and 2014) or

(2) the business income limitation in the carryforward year.

Step-by-step explanation:

The § 179 amount eligible for expensing in a carryforward year is limited to the lesser or any § 179 amount in excess of is carried forward to future taxable years and other amounts eligible for expensing.

(1) the statutory dollar amount ($500,000 in 2015 and 2014) reduced by the cost of § 179 property placed in service in excess of the appropriate acquisition limit in the carryforward year ($2,000,000 in 2015 and 2014)

or (2) the business income limitation in the carryforward year.