Bonus depreciation allows farmers to deduct some upfront percentage of their fixed asset purchases that are new during the year. The current percentage if 50% (it has been as high as 100% during parts of 2010 and all of 2011). This can be a very powerful tax planning tool, however, in many situations, farmers would rather not take bonus depreciation.
Will Harris was delighted when the first pair of bald eagles arrived on his farm in 2011. Six years and 80 eagles later, Harris faces annual six-figure poultry losses and major FSA litigation.