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Senior Contributor
Posts: 467
Registered: ‎05-14-2010
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Re: The unintended consequences of regs

My tax man advised me this week that the IRS expense provisions of the tax code allowing up to $250,000  worth of depreciation purchases to be expensed in the year they occur has expired this year. And, it will be rolled back to the $125,000 area. So, that could make a significant tax increase on some farm incomes. He said there is always a chance that Congress could pass legislation that would renew the expense ded. provision,. but with the mood of congress...doubtful. So, renting and leasing of machinery could come back into play here with all the lease/rental payments being totally expensed in the year they are made.

Of course you still can depreciate any purchases over the $125,000 limit over a 7 year life, but you no longer get that one year $250k  'expense bump' we used to have.