why does Arizona not allow sec 179 on qualified real property?

Forum|Forum|5 years ago
February 17, 2021
8 replies
24 views

I'm electing to take sec 179 under rev proc 2019-8 for a commercial HVAC unit. This is considered qualified real property. But, Proseries indicates that AZ does not allow this. Strangely, AZ and TX are the 2 states that Proseries says its not allowed. I am unable to locate an answer through Arizona's website. Can someone give me guidance to an answer?

ProSeries Professional

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itonewbie

Level 15

AZ started conforming to §179 in 2013.

See this conformity FAQ from AZ DoR: https://azdor.gov/legal-research/conformity-irc

Here are the AZ Revised Statutes for income tax if you are interested: https://www.azleg.gov/arsDetail/?title=43

---------------------------------------------------------------------------------Still an AllStar

E

ejcookie1Author

Level 2

Thanks itonewbie,

I agree with you and have researched both your references. Yet ProSeries state depreciation conformity rules/limitation worksheet indicates that for a qualified real property asset, that after 2017, AZ does not conform to federal. I can’t find that anywhere. Would you say there is an error in the program set as a default? There is an option to change the setting to conformity, but I didn’t just want to change without seeking some kind of substantiation.

itonewbie

Level 15

I can't find anything anywhere that says AZ decoupled with any federal changes after 2017. The FAQ from AZ is also quite clear about that. Can you post the exact message ProSeries is spitting out so that @Orlando11 can have his team take a look and clarify?

---------------------------------------------------------------------------------Still an AllStar

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