Monday, November 29, 2010
As per Title II, entitled 'Tax Provisions', Subtitle A, entitled 'Small Business Relief', Part II, entitled 'Encouraging Investment', of the federal Small Business Jobs Act of 2010, real property can qualify as section 179 property for both 2010 and for 2011. As per section 2021, entitled 'Increased Expensing Limitations for 2010 and 2011; Certain Real Property Treated as Section 179 property', subsection (b), certain real property can qualify as section 179 property. This subsection (b) amends the Internal Revenue Code of 1986. Also, Title II of the federal Small Business Jobs Act of 2010, and Title II only, is also known as the CREATING Small Business Jobs Act of 2010.
As per section 2021, for both 2010 and for 2011, certain qualified real property can be considered section 179 property. The real property must be subject to depreciation; and it must be acquired by PURCHASE for use in the active conduct of a trade or business. Also, there are limitations. The following types of property DO NOT qualify as real property that can be treated as section 179 property.
A - Air Conditioning Units
B - Heating Units
C - Real Property that is predominantly utilized outside of The United States of America
D - Real Property utilized for lodging
E - Real Property utilized by certain tax exempt organizations
F- Real Property utilized by domestic governmental units
G - Real Property utilized by foreign persons and/or foreign entities
