Is Section 179 for 2012 $125,000 or $139,000?

UPDATE 1/3/13: The “fiscal cliff” deal passed on 1/1/13 sets the 2012 Section 179 limit at $500,000. See this article from the Farm CPA Today for more details. 

The article below is now obsolete.


A question from a website visitor prompts me to make this post. The visitor, while reading this story, notes that I say the 2012 Section 179 limit is $139,000, but he has read other sources that say the limit is $125,000. He wondered what’s going on.

We can trace the confusion to the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.” TRUIRJCA (I’m not sure which is worse, the mouthful of the full name or the weird-looking acronym!) called for the 179 limit to be rolled back to $125,000 for 2012. However, the bill also said the $125,000 amount is to be inflation-adjusted back to 2006. For 2012, that inflation-adjusted amount is $139,000.

See IRS Revenue Procedure 2011-52, bullet-point 20 on Page 15, which says $139,000 is the amount for 2012.

Barring further legislation, TRUIRJCA calls for the Section 179 limit to drop to $25,000 for 2013.