2014 Iowa: Section 179 Depreciation
In February 2015, Iowa passed a bill to conform to the federal Section 179 limitation of $500,000 with a phase-out threshold of $2 million. This is effective from January 1, 2014. Prior to this conformity, Iowa’s section 179 limitation was $25,000 with a phase-out threshold of $200,000.
Certain taxpayers, who claimed Section 179 on assets purchased in 2014, may file an amended return if they want to increase the Section 179 depreciation on those assets.
TurboTax has fixed this issue.
How to tell if you may be impacted
You may be affected if ALL of the following apply to you:
- You filed your Iowa state tax return prior to February 19, 2015 AND
- You claimed Section 179 depreciation on assets purchased in 2014 AND
- Your Section 179 depreciation for Iowa was limited to $25,000 AND
- You want to increase the Section 179 depreciation for your 2014 assets.
If you are affected, you may have overpaid your state tax and may amend your Iowa return to increase Section 179 deductions on your 2014 assets.
To amend your return:
- Follow these amend instructions for the TurboTax Online product.
- Follow these amend instructions for the TurboTax CD Download product.
- After you make the changes to your tax return, you will need to mail a copy of your amended state return.
- Your printed return will include instructions on how and where to mail it.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the 2014 Iowa: Section 179 Depreciation.