Georgia Section 179 Limits May Require 2010 Amended Return

The Governor signed House Bill 168 into law. For taxable years beginning on or after January 1, 2010, Georgia has adopted the provisions of all federal acts that were enacted on or before January 1, 2011.

For tax years 2010 and 2011, the Section 179 deduction is now $250,000 and the related phase out is $800,000. This conformity with the federal law may affect Georgia taxpayers if:

• A 2010 return is already filed,
• Assets were placed in service during 2010, and
• Section 179 deduction, above the Georgia threshold or maximum, is claimed.

To correctly report the Georgia Section 179 deduction, you must file an amended return.