Section 179 Threshold Amounts
If the total acquired value of qualifying property placed in service during the year exceeds the threshold amount for that year, the amount of Section 179 expense that you can take decreases one dollar for each dollar exceeding the threshold amount. For example, if the total acquired value of property placed in service in a taxable year beginning in 2017 exceeds $2,540,000 ($2,030,000 threshold + $510,000 dollar limit for 2017), you cannot take any Section 179 expense deduction.
If you elect to claim a Section 179 deduction on real property (property types R, S, C, E or F) for a tax year, then you must identify all such qualifying real property placed in service in the same tax year, whether or not you claim the deduction on each piece of property. Select the Qualified §179 Property check box on the §179/Bonus Details window in Asset Detail, in order to properly calculate the phase-out limits.
The table below displays the threshold amounts for each taxable year.
|
Taxable Year |
Threshold Amount |
|
1986 - 2002 |
$200,000 |
|
2003 |
$400,000 |
|
2004 |
$410,000 |
|
2005 |
$420,000 |
|
2006 |
$430,000 |
|
2007 |
$500,000 |
|
2008 |
$800,000 |
|
2009 |
$800,000 |
|
2010-2011 |
$2,000,000 |
|
2012-2015 |
$2,000,000 |
|
2016 |
$2,010,000 |
|
2017 |
$2,030,000 |
|
2018 |
$2,500,000 |
|
2019 |
$2,550,000 |
|
2020 |
$2,590,000 |
|
2021 |
$2,620,000 |
|
2022 |
$2,700,000 |
|
2023 |
$2,890,000 |
|
2024 |
$3,050,000 |
|
2025* |
$4,000,000 |
|
2026 and thereafter |
To be indexed for inflation. |
*The One Big Beautiful Act (OBBBA) of 2025 retroactively increased the Section 179 Threshold limit to $4,000,000 from $3,130,000, effective January 1, 2025.
Note: You are not warned during data entry of an individual asset if the total acquired value of qualifying property placed in service during the year exceeds the Section 179 limit. However, you can use the Audit Advisor to determine if you have exceeded the Section 179 limit for all assets placed in service in the year.