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.
We have gotten a few emails in the last few weeks asking what the Section 179 deduction will be in 2013. The current law is a limit of $25,000 for 2013.
However, both the President and Congress have discussed increasing the deduction up to $500,000 with a phase-out starting at $2 million. It appears at the moment that the Democrats are pushing this more than the Republicans, but they have other incentives that may provide small business tax relief similar to the Section 179 deduction.
Since we about 2 months away from the election, nothing will likely happen between now and then. Two years ago, a lame duck tax bill was passed and we may be facing the same type of bill this time.
My estimate is that Section 179 deduction for 2013 will increase, but who knows by how much and this is always subject to the whims of Congress and the President.
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