|Iowa Dept. of Revenue issues statement concerning coupling, IRC section 179|
Current Iowa law allows a $25,000 limitation and a $200,000 investment limitation for Internal Revenue Code Section 179 expensing. The Iowa Legislature may enact a law that conforms with the permanent federal increases to expensing limitations but it is improbable that such law could be in place and effective by next week’s March 1 filing due date.
To avoid being subject to penalties and interest, farming and commercial fishing taxpayers and practitioners with clients who derive at least two-thirds of their income from farming and commercial fishing can file returns and pay in full any tax due under current Iowa law on or before March 1. If Iowa law is changed after March 1 to provide for different expensing limitations, taxpayers and practitioners can file amended returns and potentially receive refunds for overpayment.
For more information about federal limitations to section 179 expense limits, click here. For more information, click here to visit the Iowa Department of Revenue’s website or contact The Center for Agricultural Law and Taxation at Iowa State University via email at firstname.lastname@example.org or phone at 515-294-6365.