Section 179 Update Looking Promising for 2014

As the year comes to a close, Congress is finally getting around to extending the Section 179 for 2014 to be $500,000. I spoke with CliftonLarsonAllen Principle and Farm CPA Today Blogger Paul Neiffer earlier this week and he shares the good news.
Neiffer: “The House, I think,is passing a one-year extension of Section 179 today at $500,000 and it is also going to extend 50 percent bonus depreciation through December 31, 2014. And then hopefully if the Senate says yes, then the president should sign it next week. And from all the sources I’ve read and heard so far, I don’t think there is anything that is going to glitch it up — but we are dealing with politics so we never no. So that is the good thing, the bad thing is it is a one-year extension of Section 179. It is not a two-year extension and it is not permanent. So we are going to have to go through this mess again next year to find out what Section 179 and bonus depreciation will be for 2015.”
He adds that Congress setting up to begin discussion with the President on serious tax reform that would reduce the top corporate rate down to maximum of 25 percent and if that happens Neiffer says — based on the bills that have been floated out there — that Section 179 would become permanent at the million dollar mark.
Farm CPA Today is one of my favorite informative blogs, if you haven’t yet visited it, go to Farm CPA Today.com.