Why is my Wisconsin Section 179 expense limited?
Since Wisconsin doesn't follow the federal threshold cost of Section 179 property placed in service in 2025 of $4,000,000, you need to use the state's threshold cost of $2,000,000 instead. This means that the Section 179 expense is reduced dollar-for-dollar the amount that exceeds $2,000,000.
Example: Amy has a Section 179 expense that is $2,015,000. This expense exceeds the $2,000,000 state threshold cost amount by $15,000. This amount is the reduction in limitation. The maximum Section 179 expense amount allowed for the state is $500,000. Since the state Section 179 expense amount is greater than the state threshold cost, the maximum amount of state Section 179 expense Amy can take is lowered by the reduction in limitation, making the allowed state Section 179 expense in this example $485,000 ($500,000 - $15,000).
Example: Amy has a Section 179 expense that is $2,015,000. This expense exceeds the $2,000,000 state threshold cost amount by $15,000. This amount is the reduction in limitation. The maximum Section 179 expense amount allowed for the state is $500,000. Since the state Section 179 expense amount is greater than the state threshold cost, the maximum amount of state Section 179 expense Amy can take is lowered by the reduction in limitation, making the allowed state Section 179 expense in this example $485,000 ($500,000 - $15,000).
