Virginia Section 179 Limits May Require 2010 Amended Return

Under emergency legislation (House Bill 1874; Chapter 2 of the 2011 Acts of Assembly), passed by the 2011 General Assembly and signed by Governor McDonnell, Virginia's fixed-date of conformity to the terms of the Internal Revenue Code will advance from January 22, 2010 to December 31, 2010.

This conformity with the federal law may affect Virginia taxpayers if:

• A 2010 return is already filed,
• Assets were placed in service during 2010, and
• Exceeded the old Virginia Section 179 limits.

The old Virginia Section 179 limits were $134,000 for the deduction and $500,000 for the threshold. The new limits are $500,000 and $2,000,000, respectively.

If you already filed a return using TurboTax Business and you wish to receive the benefit of the increased Section 179 limits, you must file an amended return.