Section 179 Expense for 2014 Wisconsin Tax Returns

The federal Tax Increase Prevention Act of 2014 was signed by the President on December 19, 2014. This Act retroactively extended for 1 year a number of federal tax provisions that had expired for 2014. Included in this Act were the following provisions relating to sec. 179 expensing:

  • Extends sec. 179 expensing limitation and phase-out amounts ($500,000 and $2 million) to property placed in service in 2014
  • Extends expensing for computer software, qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property to property placed in service in 2014.

The extension of these sec. 179 provisions also applies for Wisconsin tax purposes for taxable years beginning in 2014. Wisconsin law (sec. 71.98(4), Wis. Stats.) provides that for taxable years beginning after December 31, 2013, the Internal Revenue Code related to expensing of depreciable business assets under secs. 179 and 179A-179E means the Internal Revenue Code in effect for the year in which property is placed in service. Thus any federal law changes related to expensing under these code provisions automatically apply for Wisconsin for taxable years beginning in 2014 and thereafter.

December 23, 2014