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LUBBOCK, TX – Should an additional equipment purchase be considered before the end of the year?
Tax specialists say that each filer will have a different answer. However, an increase in the deduction limit under Section 179 of the tax code might have producers considered the option before December 31, 2021.
For 2021, the deduction limit has increased to cover the total cost of new and used equipment purchased and placed into service before December 31, 2021.
The limit is now at more than $1 million ($1,050,000). Still, the deduction is reduced “dollar-for-dollar” up to $2.6 million but phased out at $3.67 million.
For those unable to take advantage of a Section 179 deduction, 100 percent bonus depreciation is generally available for qualifying new and used equipment purchased and placed into service in 2021.
(SOURCE: All Ag News)