It’s not to early to be thinking about taxes, really, and there will be changes this year that will certainly affect the horse, livestock and ag industry. I’m susan Allen reporting from beautiful Cashmere Washington stay tuned for Open Range. Two tax benefits that have been helpful for the ag and equine industries are set to revert to prior levels. The expense deduction, section 179 is going back to $125,000 for 2012 and phases out dollar-for-dollar once depreciable property reaches $500,000. This applies to horses, farm equipment and depreciable property used in this type of business and allows a horse or livestock owner to write- off up to $125,000 in assets purchased and placed in service in 2012. Last year the expense allowance was $500,000 and phased out after purchases exceeded $2 million. Also bonus depreciation has reverted back to 50% for 2012. This bonus depreciation allows horse and livestock owners to write of 50% of the cost of new capital assets , including horses , when purchased and placed in service in 2012. The bonus depreciation of the original use of the property must commence with the taxpayer. Last year the bonus depreciation was one hundred percent. The bad news is that these higher levels could be reinstated retroactively to January 1 2012 a this point it’s speculation but it remains to be seen.