CLFP Lease Accounting Practice Exam 2026 – Comprehensive Exam Prep

Section 179 deductions move over time because they’re set by law and adjusted for inflation in different years. The maximum amount you can expense in the year, and the point at which that limit begins to phase out, aren’t fixed—they’ve been changed by various tax acts and annual indexing. That’s why the deduction limits and phase-out thresholds aren’t the same year to year. It’s also worth noting that Section 179 can apply to used equipment as well as new, as long as the property is eligible and used in a qualifying business activity. So the true statement is that the deduction amounts and phase-out thresholds have changed over the years.