North Carolina Section 179 Limits May Require 2010 Amended Return

The North Carolina General Assembly has partially adopted the Small Business Jobs Act of 2010 that was signed into law by President Obama on September 27, 2010, including provisions for bonus depreciation and section 179 expense.

This conformity with the federal law may affect North Carolina taxpayers if:

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

The North Carolina Section 179 limits are $250,000 for the deduction and $800,000 for the threshold.

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