IRC SECTION 179

Corporations and franchise income taxpayers can now claim the Sec. 179 asset expense election that was available only to personal income taxpayers in California.

For California franchise and income tax purposes, the maximum Sec. 179 expense allowance is $25,000.  Additionally, in California, the deduction's phase-out amount is $200,000 ($400,000 for federal purposes).  The election can't be claimed for off-the-shelf software.

One area of nonconformity is the federal provision that allows the taxpayer to revoke a Sec. 179 asset expense election during taxable years 2003-2007.

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