Is an One-Year Extension of Section 179 all we get?!
The House has proposed H.R. 5771 – Tax Increase Prevention Act of 2014 to extend all expiring tax provisions for one year through December 31, 2014. This would include keeping Section 179 at $500,000 for 2014 and 50% bonus depreciation through December 31, 2014.
It appears that this bill may be an all or nothing type bill. Either this bill gets passed this week or nothing will be done regarding Section 179 or bonus depreciation. Congress is trying to get everything done either this week or early next week so they can get home for Christmas.
If this is all that gets done, it is not much of a Christmas gift for farmers and other businesses. Yes, it does extend these expiring provisions for another year, however, it now means we have to go through this mess next year and we won’t know what Section 179 or bonus depreciation is for 2015 until December 2015 (which appears to be a common theme lately).
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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