A Christmas Present?!
Now that the mid-term elections have resulted in a landslide for Republicans (who have two years to not mess it up), we turn to the lame-duck congressional session that will occur between now and the end of the year. In the session two years ago, Congress extended many “extenders” including keeping Section 179 at $500,000 and bonus depreciation at 50%.
This year, we expect Congress to enact similar legislation. They will meet over the next six weeks or so and around Christmas time we will get the final tax package. This tax package will extend many of the “expired” tax provisions and it is likely that Section 179 will be increased from the current $25,000 level. The mood in Congress appears to support having Section 179 at $500,000, however, this is politics and who knows what the final number will be.
On 50% bonus depreciation, many of us expect this to be extended too, however, this may have a lower chance of success.
As we have previously mentioned many times throughout the year, the final Section 179 will not be known until late this year and we hope it is in time to be a nice Christmas gift for our farmers.
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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