Products Affected:
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- ProSeries/1040
- ProSeries Basic/1040
Situation
Idaho updated their IRC conformity date to January 1, 2008. This means that Idaho conforms to the latest IRC Section 179 limitations from $112,000 to $125,000 maximum Section 179 deduction and from $450,000 to $500,000 for the cost threshold of qualified Section 179 property.
Solution
These situations will be corrected in the Federal 1040 update anticipated to be available online on or about March 3, 2008. Download and install this update when it becomes available. (Go to the Update menu and select Update Installed Products.)
Workaround (prior to update)
Follow these steps to manually change the ID Section 179 deduction maximum and cost threshold defaults:
- In the client's federal tax return, open the Depreciation Options worksheet. (From the Forms menu, choose Select Form. In the Open Forms dialog box, the Depr Options worksheet is listed under Form 4562.)
- Scroll down to the State Defaults for Special Depreciation Allowance (SDA), Luxury Autos, and Section 179 section. Go to the ID line. (You may need to click More to expand the table to access ID.)
- In the SECTION 179 area of the table, change the Max amount to $125,000 and the Threshold amount to $500,000.