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Member

depreciation rules 2014

Is there any chance that Congress will reinstate the 2013 depreciation--section 179 limits and first year bonus figures that were in effect last year?

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14 Replies
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Honored Advisor

Re: depreciation rules 2014

Two chances

 

 1) slim

 

2)  none

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Veteran Advisor

Re: depreciation rules 2014

My Kiplinger tax letters say that there is an almost certainty that the tax rules will be changed to authorize big section 179 deductions for 2014. So keep spending and hoping.

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Senior Advisor

Re: depreciation rules 2014

I'll keep hoping, but I'll let someone else do the big spending. The buzz that my accountant is hearing is that they'll change it to 1 million dollars and leave it alone for several years. There's probably several theories being discussed about it.
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Senior Contributor

Re: depreciation rules 2014

I think congress will eliminate depreciation period. When you can sell your 1965 JD 4020 for more than you gave for it new, you have appreciation rather than depreciation. So when you make out that financial statement for your local banker you have to send a copy to the IRS` and they will tell to pay ordinary income taxes on your gains. After all you deduct depreciation off of ordinary income so appreciation should be taxed accordingly.

 

Really visec, I could use a little help paying taxes and if you got money for new equipment you sure have some for uncle sam too. Or do you think government is free.

 

MItch McConnell has vote 4 times to raise his own wages. He has voted against the minimum wage every time it came to the senate. And he thinks he is fair and balanced!

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Senior Advisor

Re: depreciation rules 2014

Kraft you've been watching to many election infomercials, you've become very crafty (no pun intended) at twisting and manipulating previous comments and stating why farmers don't need breaks or cuts. I thought you were a retired producer, why are you always going against the flow of things? Is it because many weren't in place before you retired and are showing a little jealousy? Please let us know, I thought we were suppose to stick together but you deem it necessary to stand back and point finger.
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Senior Contributor

Re: depreciation rules 2014

Because too many farmers don't appreciate the advantages they have. The last ten years have been the most advantgeous to farmers and they still whine like stuck hogs.

 

The tax code has been quite friendly to farmers but you would never know it by the squeeling.

 

 

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Senior Advisor

Re: depreciation rules 2014

Do farmers get any additional tax benefits compared to other business owners?

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Senior Advisor

Re: depreciation rules 2014

Perhaps you need to search the web for additional business forums and procede to bash them for merely taking advantage of the tax codes & laws that are presented to them instead of taking pop shots at the very individuals you choose to converse with daily.

 

Farmers don't make or write the rules any more than the next guy but who would be the fool if we didn't take advantage of them?

 

You can point fingers down in the forum section, but we get a little defensive up here in the business forums.  Smiley Tongue

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Senior Contributor

Re: depreciation rules 2014

The depreciation rules and the bush tax cuts were temporary measures set to expire after a period of time. The government has been running huge deficits while you write off a $200K tractor in one year that probably will be worth at least $100K ten years from now. In other words you are expensing items before the the expense occurs.

 

Which is not to say that you are doing anything illegal. It just means you are expecting special treatment from the tax code and expect it to be permanent.

 

BTW.. I am still actively farming and can utilize any deduction that you can should I choose. Don't you think it is a bit silly that you can deduct a 40K coffee shop pickup and the working stiff cannot deduct his ride to work? Why don't I buy more tile or more grain bins? Because I like cash in my bank account and that is my purpose for farming.

 

No you don't make the rules but farmers like deduction better than paying taxes. As if government can pay for itself!

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