Iowa Section 179 Limits May Require 2010 Amended Return

Changes for tax year 2010 Iowa Income Tax filing became effective April 12, 2011 with the enactment of Senate File 512.

This legislation couples Iowa tax provisions with federal provisions retroactive to January 1, 2010, including increases in Section 179 expensing.

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

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

The old Iowa Section 179 limits were $134,000 for the deduction and $530,000 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.