What Section 179 means to your farm


In anticipation of President Obama signing the tax extenders legislation; Section 179 tax credits will be reinstated for 2014. Eric Gullicksrud is Tax and Accounting Manager for Badgerland Financial in Mondovi, Wisconsin, he says given what farm income was this year, especially for dairy and livestock producers, you may be tempted to run-out and make some big purchases.  He cautions you need to seriously look at what your farm income may be next year and remember you are still going to need to make those payments on principle.  “They need to get their income and expenses together to know where they are at.”

Another thing to take into consideration is if you are participating in the Affordable Care Act. If you are drawing a premium credit it is based upon income.  “So if they projected their income to be low to get a bigger premium credit, if that income goes up they could end up paying that premium credit back again and that will have an effect on what your premium credit could be for 2015 as well.”

Bottom line; you need to talk to your tax planner before the end of the year if you have not already done so. “Regardless of whether you think you had a good year or not.”  Gullicksrud talks about the scenario:


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