Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 12/2/16


It is a common tax management strategy to use accelerated depreciation, which includes bonus depreciation and section 179 depreciation, to reduce taxable income on crop farms. For 2016, up to $500,000 of section 179 depreciation and 50 percent bonus depreciation can be used when purchasing assets. Relatively low expected net returns make these accelerated depreciation methods less attractive than they were a few years ago.

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