Section 179 of the tax code sets forth specific rules for carryover. Taxpayers should be aware of these regulations prior to claiming any tax deductions.

Any amount which can’t be deducted in one tax year because of the taxable income limit (see next item) may be carried over to the next year and added to the cost of qualifying property in that year. Apply carryover amounts on a FIFO basis. The carryover amount is subject to the taxable income limitation and maximum dollar limitation in effect for the carryover year. No carryover is available for deductions lost due to the investment limit or the maximum deduction limit.