Changes to Publication 225 (Farmer's Tax Guide), as a result of PL 114-113; Protecting Americans from Tax Hikes Act --18-Jan-2016
Please note the following changes to Publication 225 as a result of PL 114-113, Protecting Americans from Tax Hikes Act, which was signed into law on December 18, 2015. Publication 225 was posted to IRS.gov in October, 2015. The information in the publication reflected current law at the time it was posted.
On page 2, middle column, under the heading "Section 179 expense deduction dollar limits," please note the following: for tax years beginning in 2015 the maximum section 179 expense deduction is $500,000 ($535,000 for enterprise zone property). This limit is
reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2 million.
As a result of the changes made by the Protecting Americans from Tax Hikes Act, the examples found on pages 39, and 40 do not use the proper maximum section 179 expense deduction limit. For accurate examples, please refer to the Instructions for Form 4562 or Publication 946.