The enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010) includes several business-related tax incentives for U.S. farmers who choose to invest in and place equipment into service in 2012.* Taking advantage of these benefits is another way to Be Ready for the increasing demand to feed a growing population.
Section 179 Deduction
The Section 179 deduction for 2012 on qualifying new and used equipment purchased after adjustment for inflation is $139,000 and the Maximum Investment Limitation is $560,000. This deduction is phased out for each purchase dollar exceeding $560,000.
For 2013, the Section 179 deduction on qualifying new and used equipment purchases is set to drop to $25,000 and the Maximum Investment Limitation is $200,000. Calculate your potential deduction with our tax deduction calculator.
There also is a first-year 50% bonus depreciation on qualifying new equipment purchases in 2012. This may apply to taxes in the previous or future years (i.e. net operating loss carry-backs or carry-forwards). Under current law, bonus depreciation will not be available on qualifying new equipment purchased in 2013.
Other Key Advantages
In addition to potential tax benefits, guaranteed delivery and best prices are available to Case IH customers through the pre-order program. Here’s more information on pre-ordering Case IH 2013 models and be sure to visit your local Case IH dealer to learn more about the benefits of pre-ordering your equipment this year. You’ll find the best offers of the year on proven Efficient Power equipment that maximizes productivity and fuel economy.
Have you used the pre-order program? If so, let us know how it helped you and your operation. We welcome your comments and are committed to helping you Be Ready for the future.
*Tax information applies to U.S. customers only. CNH Capital and Case IH dealerships do not provide tax, legal or accounting advice. Customers are strongly encouraged to seek and consult their own tax professional advisors for advice on the proper tax treatment of these transactions.