Section 179 Increase Would Be Good News For Farmers

Section 179 Increase Would Be Good News For Farmers

Earlier this week there was some good news on possible changes to tax law that would return Section 179 to the $500,000 level and make it permanent. As you may recall, this was dramatically lowered in 2014 to a mere $25,000.

Paul Neiffer, CliftonLarsonAllen Partner and Farm CPA Today Blogger, shares more details on this hopeful and positive news out of the House Ways and Means Committee.

Neiffer: “They voted to make Section 179 at $500,000 level and the nice thing is they said they’d make it permanent. The permanent law now is $25,000 and they want to bump it up to $500,000 and that would be good news for our farmers. The Senate Finance Committee also voted that it would be $500,000. Even President Obama has talked about it being at least $250,000 — possible $500,000. So I think when you have both the Republican House and a Democratic Senate Committees basically passing the same law there is a pretty good chance it is going to go through. But again, we’re not going to know until after November 7th or whenever the election is.”

Neiffer says it is difficult to predict exactly what the amount will be

Neiffer: “It will be probably be at least $175,000. I’m fairly comfortable it’s going to be at least with $250,000. I think there is a very, very, very good chance it will be $500,000 — retroactive to the beginning of the year.”

If you are interested in learning more go to Neiffer’s blog, Farm CPA

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