Fate of key deduction still uncertain

I wrote a story this spring about Section 179, a key tax break that’s important to farmers and ranchers. Members of the region’s Congressional delegation, as well as farm equipment dealers, said the were hopeful of good news but that there were unsure when and if might not come.

Section 179 of the U.S. Internal Revenue Code had allowed farmers and other businesspeople to deduct up to $500,000 of new or used equipment purchased during the tax year. On Dec. 31, however, the limit was restored to $25,000, its original limit, plus a small adjustment for inflation, for the 2014 tax season. Farmers and others want a higher limit, preferably a much higher one.

I’ve been watching the issue for new developments. So far, though, there’s really been nothing to report.

Others are watching, too, of course. Kim Dillivan, crops business farm management specialist with South Dakota State University Extension, says in an online extension publication that it remains to be seen whether Congress can come up an agreement in the next few months.

Section 179 is a big deal in agriculture. It will be interesting to see what, if anything, Congress decides.

 

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