field_block:node:page:title
Section 179 Expensing Subtraction
field_block:node:page:body
Section 179 expensing lets businesses deduct the entire cost of certain equipment on their federal tax return in the year of purchase (instead of deducting depreciation over multiple years). For taxable years 2006 through 2019, Minnesota limited this expensing to the amount allowable in 2003, when the federal limits first increased. You may have needed to add back part of your federal deductions for section 179 expensing for these tax years.
field_block:node:page:field_paragraph
To qualify, all of these must be true:
- You made a Section 179 Expensing Addition on your Minnesota tax return.
- You had deductions on your federal tax return for increased section 179 spending for any tax year from 2015 through 2019. The addition is not required for tax years 2020 and later.
- You added back 80% of those deductions on your Minnesota return in that same year
For example, if you made the section 179 expensing addition for 2015 or later, you may subtract 20% of that amount from taxable income on your 2021 return.
Complete Schedule M1MB, Business Income Additions and Subtractions and include it when you file Form M1, Individual Income Tax. See our Find a Form to get the correct year.
If you sell or dispose of the asset or business before the subtraction period ends, you may not take the remainder of the subtraction in the year of sale. You must continue with the five-year schedule. There is no separate basis adjustment for Minnesota.
For more information:
