The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
Most farmers know the benefits of the Section 179 deduction. The deduction has been as high as $500,000, is $139,000 for 2012 and is scheduled to drop back to $25,000 in 2013.
What many farmers do not know about is the ability to go back and amend their tax return to change their Section 179 deduction. The reasons for doing this are many:
Under current law, this amendment is only available for assets placed in service before January 1, 2013. For 2013, once you make the Section 179 election it is irrevocable (unless Congress extends the law). You generally have three years from the due date of your return to make the amended election.
If rates dramatically increase next year, it may be wise to amend your Section 179 deduction for prior years to bring some of that deduction forward into 2013 and beyond. Check it out with your tax advisor.
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