Farm Taxes- schedule 179 write offs

[CalumetFarms]

I'm curious how many folks utilize or have used section 179 (4562 form) to expense 100% of equipment costs in that year vs. the depreciation method?
Has anybody had issues doing this for Tractors, trucks, implements ECT.
I bought another tractor, a batwing and a drill to name a few in 2021 so full expense write off would be worthwhile.

 

[Stocker Steve]

Yes. because I have a taxable income target and a strong cash flow.

Bean counters warn against this depreciation method when you finance the purchase - - due to potential cash flow issues in the future where you have an annual loan payment to make, but no tax deduction left to partially offset the loan payment.

 

[callmefence]

Yes we've used it every year. Thank you Donald Trump

 

[1982vett]

Tax management…use it to keep your tax obligations in a favorable spot. Section 179 is useful in years your taxable income is higher than usual. It may keep you out of a higher tax bracket. If your already in a low bracket with little taxable income, not using it would give you larger depreciation deductions in future tax years.

 

[BlueCollarCattle]

Yes we've used it every year. Thank you Donald Trump

Why did you thank trump?