Expect Section 179 Update Soon

June 22, 2015 12:00 PM
Expect Section 179 Update Soon

There’s a good chance producers will have updated information on Section 179 for 2015 and 2016 by Labor Day this year, predicts Paul Neiffer, a CPA and partner at CliftonLarsonAllen.

Power Hour Noon Logo“I said in June of last year, ‘You’re going to know at Christmas time [about Section 179],’ and I think it was Dec. 19 when we finally knew,” Neiffer tells AgWeb.com, for which he writes The Farm CPA blog. “This year, I think there’s a good chance that we’ll know this summer.”

This year, there has been plenty of chatter suggesting farmers will have concrete details to act on much sooner.

“It’ll be at the $500,000 level,” Neiffer predicts. “It won’t necessarily be permanent, but I think the positive is there’s a good chance that it would be $500,000 for this year and $500,000 for next year. We’d have some certainty for two years.”

The fate of a related provision, bonus depreciation, is less certain, Neiffer says. That allows producers to deduct half the cost of a new building or machine shed.

“We’ve got this discussion with the Federal Reserve. Are they going to raise interest rates?” Neiffer explains. “I’m starting to hear more and more chatter it might be 2016 or beyond before they start raising rates again. The economy is just not where it needs to be, so Section 179 and bonus depreciation, that’s supposed to provide impetus to the economy. We’ll see what happens.”

Click the play button below to view the complete video interview with Neiffer.

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