A free 60-minute webinar addressing new depreciation rules and how they will affect farmers’ operations is being hosted by TractorLife.com, a Web site that helps farmers maintain and extend the operating lives of their tractors.

To register for the Nov. 15 webinar, to be held at 2 p.m. EST, visit bit.ly/rntTo4.

Roger McEowen, ag law and taxation professor at Iowa State University, and Robert Gunther, CPA and tax specialist with Frost, PLLC in Little Rock, AR, will discuss new tax regulations passed by Congress last December. During the webinar, they will share insights and practical examples about:

  • How to take advantage of 2011 machinery purchase tax incentives expiring on Dec. 31 of this year and 2012;
  • How farmers can handle depreciation and tax ramifications of new and used farm equipment bought in 2011 and 2012;
  • How farmers can use tax law changes to benefit their farming operations; and
  • How depreciation rules work and what might be in store for farmers in 2013.

Understanding these new tax regulations and depreciation rules can deliver significant financial benefits to farmers.

For example, a 100% bonus depreciation is available in 2011 for new farm machinery purchased this year, but only a 50% bonus depreciation in 2012. The 100% bonus depreciation can be applied to more than just farm machinery. In lieu of machinery, it can be applied to new farm property having a recovery period of 20 years or less.

The webinar will also address Section 179 deductions, taxable losses and the tax ramifications of bonus depreciation allowances in different states around the country. Not all states accept the bonus depreciation in its entirety.

McEowen and Gunther recommend that farmers discuss the new depreciation regulations with their tax consultants before buying new machinery or farm property.