A reminder that Iowa lawmakers finally came to their senses earlier this year and decided to couple with federal law on Section 179 expensing for 2011 and 2012. This means the Iowa Section 179 limit is the same as the federal limit: $500,000 for 2011 and $139,000 for 2012.
But remember, Iowa is NOT coupling with federal bonus depreciation. There is no bonus depreciation in Iowa. If you claim bonus depreciation on your federal return, you’ll have to recalculate the deduction on your Iowa return.
Further Dinesen Tax Times coverage: Section 179 and Bonus Depreciation Limits Expire December 31