Agribusiness BlogFarm CPA Today

Equipment

  • Videos of Wheat Harvest

    Just some short clips of wheat harvest near Dixie, Washington (about 12 miles east of Walla Walla, Washington) on Saturday, August 11, 2012. Short clip of harvesting wheat Short clip of grain cart coming up the hill with Dixie/Walla Walla in the background Longer clip of dumping wheat in the grain cart All of these […]

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  • My Two Days on the Farm

    I spent Friday afternoon and all day Saturday cutting wheat for my cousins down in Walla Walla.  I started out on Friday driving their older Case IH 2388 and then they kindly allowed me to drive a new Case IH 8230 with about 100 hours on it that they were renting.  This is a nice […]

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  • IRS Announces New 2012 Mileage Rates

    The IRS announced this week the new standard mileage rates for 2012.  Most of the rates remained the same as the last six months of 2011.  For regular business use, the rate is still 55.5 cents per mile (don’t ask me where they came up with the half cent).  For charitable purposes, the rate is 14 […]

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  • Year-end Equipment Flexibility

    We had a reader ask the following question: “If I purchase and take delivery of a tractor in December 2011 but do not want any of the depreciation until 2012 can I still get the section 179 and bonus depreciation in 2012?” In order to depreciate equipment such as this tractor in 2011, the farmer must both purchase […]

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  • Watch Your Section 179 Deduction From Multiple Entities!

    With the increased Section 179 deduction available in 2011 of $500,000 farmers need to be very careful if they have ownership in multiple partnerships and S corporations that will be purchasing large amounts of used equipment and deducting it under Section 179.  The partnership and S corporation have an overall $500,000 Section 179 limitation on deducting at […]

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  • Hillside Combining Part 2

    We had a reader in Washington state suggest that we try to explain how steep some of these hills are that we harvest in this area.  Unless you have been on a combine harvesting a steep hill, it is hard to explain just how steep these hills are. I know that as a child with […]

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  • How Does Depreciation Recapture Work?

    We got the following question from one of our readers: “When does depreciation recapture on equipment kick in? For example a 20 year old tractor fully depreciated sells for $30,000 cash. It cost $50,000 new. Is any of the $30,000 considered a capital gain?” This is a fairly common transaction for many farmers during their […]

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  • Components May Qualify for 100% Bonus Depreciation

    In a post a couple of days ago, I indicated that a new Ag building placed in service after September 8, 2010 but where the construction started before that date would not qualify for 100% bonus depreciation, but would qualify for 50% bonus depreciation. There is one exception to this rule that may help farmers […]

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  • Watch Your Date of New Construction

    The tax law passes late last year had a very favorable tax treatment for the construction of new farm buildings.  In that law for any new farm buildings placed in service after September 8, 2010 and before January 1, 2012, a farmer would be able to write off 100% of this new construction cost in […]

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  • Machinery Companies Not Doing Good

    Several of the farm equipment manufacturers that are publicly traded have recently posted their third quarter earnings.  In most cases, these earnings were down from last year’s third quarter and in some cases, the amount was down substantially. Agco’s net income was down about 90 percent.  The company blamed their earnings short fall on two […]

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  • Don’t Trade-in Equipment – Sell it Instead

    As a tax advisor, I would normally tell my farm clients to always do a like-kind exchange on their farm equipment.  This would normally result in trading-in an older piece of equipment for a newer one of higher value to defer the tax on the old farm equipment. However, for 2009, there are many cases […]

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  • Joint Ownership of Machinery

    With the ever increasing cost of new and used farm machinery, it may pay for farmers to enter into joint ownership of certain farm machinery.  Probably the best type of machinery to have in joint ownership would be combines, sprayers and drills.  This type of equipment is usually only used at certain times of the […]

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  • World SuperBike Races

    (Warning – this post does not have anything on farming) My wife and I attended the World SuperBike races in Tooele, Utah this weekend.  I currently ride a BMW K 1200 S similar to the photo posted here.  I grew up riding small dirt bikes and had not been on a sports bike for about […]

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  • Great way to test for moisture

    On a recent episode of Agday, there was a small feature on a product from Reichhardt called a minibatt.  This is a very small hand-held portable combine that allows the farmer to harvest a small amount of grain and get a very quick reading on moisture levels of the crop.   I know growing on our farm, […]

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