We had a reader ask the following question:
"What is the Section 179 amount for 2013 and what will the amount be for 2014?"
The first part of the question is easy to answer. For 2013, Section 179 is $500,000 and it starts to phase-out as your equipment purchases exceed $2 million. Section 179 applies to all farm property with a depreciable life of 15 years or less which includes almost all farm property except for farm buildings. Section 179 can be used on new and used property, however, it is only available on the boot portion of property acquired in a trade.
For 2014, it may get a little more complicated. Right now, Section 179 is $25,000 for 2014. There have been proposals by President Obama to raise this to possibly $1 million and perhaps even make that a permanent number. However, as of yet, and knowing how dysfunctional the whole process in Washington DC is right now, it may remain at the $25,000 until after next year's election.
On a similar subject, 50% bonus depreciation on all new farm property is available for 2013, but is scheduled to phase-out for 2014. Again, this may change and we will keep you posted.