Numerous federal income tax provisions are scheduled to expire at the end of this year, unless Congress acts.
North Dakota State University Extension farm economist Ron Haugen says several of those changes will affect agricultural producers.
One is the section 179 expense election, which is 139-thousand dollars for 2012. It is scheduled to revert to 25-thousand dollars in 2013. Also, 2012 is the last year for bonus depreciation, which is at 50 percent. It is available for qualifying property placed in service in 2012.
Haugen says those two expiring provisions will greatly impact agricultural producers’ ability to reduce taxable income.
But, Haugen notes, all of those expiring provisions could still be changed by Congress—and with presidential approval—before the end of the year.