Agricultural producers have until March 2, 2015, to file their 2014 income tax returns without penalty if they have not made estimates. “Producers have until April 15 to file without penalty if they have paid their estimated tax by Jan. 15,” says Ron Haugen, North Dakota State University Extension Service farm economist.
Items to note for 2014 income tax preparation:
- The 179 expense election for 2014 is $500,000. Generally, the 179 expense election allows producers to deduct up to $500,000 of machinery or equipment purchases for the year of the purchase. There is a dollar-for-dollar phase-out for purchases of more than $2 million.
- The additional 50%, first-year bonus depreciation provision is in effect for 2014. It is equal to 50% of the adjusted basis after 179 expensing. It only applies to new property that has a recovery period of 20 years or less.
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