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10 Tax Tips for Farmers

        Money | Taxes

1
Section 179
Farmers can deduct machinery and equipment from their taxes.  Imacon/Getty Images
Farmers can deduct machinery and equipment from their taxes. Imacon/Getty Images

People are nuts about Section 179. And on the surface, you can absolutely see why: It's a way of deducting the cost of certain business expenses and equipment at full value. A lot of business expenses have to be depreciated, meaning that you can knock a fraction off on your taxes every year until the expense is fully deducted. That's great if you're looking to help relieve a tax burden for several years running, but if you're looking for a way to quickly lower your tax bill this year, a full deduction is really appealing.

Obviously, there are some rules for farmers looking to take Section 179 deductions. All the property has to be tangible or real property, and -- surprise surprise -- some of those rules are too complicated to cover here. But know you can deduct any machinery and equipment, some storage tanks and even fur-bearing livestock. (Yes, it's detailed.) You can deduct up to $25,000 using Section 179, as of 2014.

So, are you ready to harvest some more money come tax time? Read on for more tax-related information.


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