9/30 Year End and Section 179

[Bart]

I have a client with a 9/30 year end. The 9/30/08 tax return will be a 2007 tax return. For year end 9/30/08, they placed in service $300,000 worth of new property in February 2008. Can they elect to expense $250,000 under the 2008 rules since the equipment was placed in service in 2008?

[jainen]

>> Can they elect to expense $250,000 under the 2008 rules<<

Are your referring to IRC Section 179(a)(7)?

"In the case of any taxable year beginning in 2008 the dollar limitation under paragraph (1) shall be $250,000."

[kcjenkins]

No, they can not use the 08 rule for a return that begins in 07.