IRS Notice 2013-59 provides guidance to taxpayers who choose under Section 179(f) to treat as an expense the costs of certain real property placed in service during any taxable year 2010 through 2013.
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The notice defines which real property is eligible for the election and explains how excess Section 179(f) deductions are carried over and taken into account in future years.
It also provides allocation methodologies for determining Section1245 and Section 1250 recapture upon the sale or other disposition of qualified real property where the unadjusted basis is reduced by the Section 179 deduction.
Notice 2013-59 will be published in Internal Revenue Bulletin 2013-40 on September 30.