Section 179 Depreciation

For 2013, the max section 179 depreciation is $139,000. To qualify, the property must be used over 50% in a trade or business and not be purchased from a related party. The property can be used. Most rental property doesn't qualify and vehicles are generally subject to a lower limit of $25,000. Trucks and vans (loaded) over 14,000 pounds are eligible for the full $139,000. Qualifying property consists of equipment, furniture, and computers. Non qualifying property includes buildings and their components, fences, air conditioning units, landscaping, and property acquired by gift, inheritance or trade. The section 179 deduction is also limited by the total taxable income from all of the taxpayer's businesses. If the deduction is limited because of the taxable income limitation, the excess can be carried forward to future years until utilized.