Take advantage of bonus depreciation and Section 179 before it's too late
November 17, 2011
will be reduced from 100 percent in 2011 to 50 percent next year, and the expensing limits and phase-out thresholds for Section 179 are also set to decrease.
With the end of the year quickly approaching, farmers and ranchers are looking to take full advantage of the current provisions before they are reduced. However, there is a tendency to want to over-use the options just because they're available. This may not be the most advantageous strategy, according to a recent webinar held by CPA Robert Gunther and Roger McEowen, professor of agricultural law and taxation at Iowa State University.
That being said, for those who simply haven't got around to making new fixed asset
investments yet should do so quickly before the provisions expire.
"Producers need to remember how important a tool depreciation can be and take advantage of opportunities in the tax code," said Gunther, as quoted by the Southwest Farm Press.
The Houston Chronicle warns that fixed assets
must be installed by December 31 in order to be eligible.