Tag Archive: "Section 179"
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How Does Section 179 Work?
A reader sent us the following question: “I am wondering how many dollars worth of used machinery I can purchase and use for 2014 income deduction. I do not understand Section 179.” I get this question fairly often especially regarding how much Section 179 farmers can use for 2014. The current law is that a […]
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John Deere Expects Increase (Hopes For) in Section 179 and Bonus Depreciation
John Deere released their first quarter fiscal 2014 years yesterday and profits were up slightly from the year before. As part of the conference call, they highlighted that US farm receipts are expected to remain high, however, based on their graph in slide # 6, they do show US farm receipts over $400 billion in […]
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One Possible Section 179 Strategy
We had a reader ask the following question: “Should I wait to buy section 179 property until the date 179 property is raised from $25,000 to whatever?” As we have said in a previous post, who knows when the Section 179 deduction will be raised from $25,000 to “whatever”. In fact, Congress may end up […]
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Section 179 Update (or Not)
We had a reader ask the following: “I haven’t been able to see if there is any development in increasing the limit for Sec 179 lately for 2014. I am holding out on any equipment purchases until I see an increase in the limit. I would appreciate it if you keep us informed on any […]
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CPR for Section 179
The University of Illinois publishes a daily blog called the FarmDocDaily. This posting deals with information related to their Illinois farmers and sometimes it covers tax subjects important to farmers. Today, they covered Section 179 and provided a very interesting table related to amount of Section 179 deduction as a % of total depreciation expense on annual […]
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Some Thoughts on Section 179 & Bonus Depreciation
Farmers have gotten accustomed to high levels of Section 179 ($500,000 for the last few years) and at least 50% bonus depreciation since 2008. For 2013 the levels are $500,000 for Section 179 and 50% bonus, however, for 2014, Section 179 is scheduled to drop to about $25,000 and there will be no bonus depreciation. […]
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Section 179 Crystal Ball
We had a reader ask the following question: “What is the Section 179 amount for 2013 and what will the amount be for 2014?” The first part of the question is easy to answer. For 2013, Section 179 is $500,000 and it starts to phase-out as your equipment purchases exceed $2 million. Section 179 applies to all […]
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Section 179 / 50% Bonus Depreciation
Due to the passage of the new tax law this week, we have gotten several questions about Section 179 and bonus depreciation. A couple of questions are as follows: “Can you please expand on the extension of section 179? For 2012, will the limits remain at $139,000/$560,000 or do they increase to $500,000/$2mil. For 2013, […]
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Some More Goodies Buried in the Fine Print
Included in the tax bill passed this week were some additional tax “goodies” for both farmers and non-farm taxpayers. In previous years, taxpayers over age 70 1/2 were allowed to contribute up to $100,000 each year to a qualified charity and not have it count as income. The amount given to the charity was not […]