Farmers can receive sizable tax write-offs under the small-business law that was signed by President Barack Obama on Monday. The new law raised the threshold on Section 179 expenses from the current limit of $250,000 to $500,000 for tax years beginning in 2010 and 2011. In the past, this deduction did not apply to purchases exceeding $800,000, but the new threshold was raised to $2 million.
With commodity prices rebounding and relatively high crop yields, some farmers are expected to take advantage of the tax benefit. “Now a lot of grain can be reported as farm equipment on the tax return,” said CPA Andy Biebl, a principal with Larson Allen in Minneapolis.
AFBF supported passage of the small-business law