Farmer Iron

Last Chance for Tax Savings

Enhanced depreciation is a great tax-saving tool if you're buying.

Equipment sales have been strong - in the over-100-horsepower - tractor category for all of 2008. Whether that translates into 2009 remains to be seen.

 

During the Farm Futures Management Summit in St. Louis recently, one speaker commented he had heard about a bunch of machinery order cancellations, which is anecdotal evidence that some farmers are hunkering down going into the New Year.

 

If you're making that kind of choice, comment below and tell us more, but if you're in the market for new machinery and your dealer has it on hand, your time is running out to buy for 2008. That is if you're planning on saving a little on taxes (and you were planning on buying anyway).

 

The enhanced depreciation tool - called the Section 179 Expensing Deduction - could allow you to write off the entire purchase of capital equipment - up to $250,000 - in one year. There are specific rules that apply, but that provision is a solid tax-saving tool.

 

I'm no tax expert, but chances are you have one. While you don't want to run your business with an "avoid taxes" strategy, taking whatever the government is giving might be a smart business move if a new equipment purchase is still in the cards. Talk to your tax adviser and then move fast. Next week will creep up on you before you know it.

 

And if you want to know more about the Farm Futures Management Summit visit www.farmfutures.com/summit for more information. The date for the second summit is Jan. 21 & 22, 2009. Perhaps we'll see you there.

 

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