Equipment Tax Incentives End December 31, 2013 – Case IH | Blog
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Equipment Tax Incentives End December 31, 2013

As the end of the year draws close, consider the benefits of buying equipment that will help you Be Ready day in and day out on your operation while some sizeable incentives are still in play.

Are you planning any year-end purchases to make your farm more efficient? You can calculate your potential depreciation deduction with our tax calculator.

Buyers can deduct 50 percent bonus depreciation on qualified new equipment purchased and placed in service by December 31, 2013.  After December 31, this incentive will expire unless Congress reinstates it.

Another popular incentive that is scheduled to be lowered is Section 179 of the Internal Revenue Code. If elected, it allows a deduction of up to $500,000 with a $2 million investment limit for 2013. However, these limits are scheduled to drop to $25,000 with a $200,000 investment limit in 2014.

“Buyers should keep in mind that while the Section 179 deduction is eligible for both new and used equipment, the 50 percent bonus depreciation only applies to new assets,” says Terry Miller, Manager, Marketing and Communications, CNH Capital. “It’s also important to know that, if elected, the Section 179 deduction has to be claimed before bonus depreciation.”

If you’re planning to purchase equipment before the end of the year, talk with your tax professional to see how you can take advantage of these incentives, and visit your local Case IH dealer to see what equipment might still be available.

NOTE: 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.

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  • property tax assessment2.1.2014 Reply

    The problem is that regular taxpayers, like you, are missing out on legal and safe deductions, to the tune of hundreds of millions of dollars in unclaimed refunds every year! As a tax professional, it truly breaks my heart, knowing that just a few thousand, or even a few hundred bucks for us “regular guys” out of that vast pool of overcharging could make a world of difference–and they are just sitting there, unclaimed! And with the economy we’re facing now…it’s essential that the “right” professional handles your taxes, books, or other financial matters.

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