FARM BUSINESS NEWS
Taxlink by Andy Biebl
Andy Biebl DTN Tax Columnist
Mon Mar 3, 2014 02:41 PM CST

It took the IRS four drafts, but we have finally arrived at final regulations on when an expenditure is a current expense versus a capitalized improvement. This has long been a vexing question. Fortunately, farmers tend to have less risk on this issue than their non-ag counterparts. Farm structures range in depreciable life from 10 to 20 years, whereas real estate in the non-ag sector is 39 years. Here are some of the key definitions from the new regulations.

Materials and supplies

These are deductible at purchase, even though there is significant value. Examples are fuels and lubricants, and other ...

Quick View
  • Betting on Shorter Beans Researchers at the University of Nebraska and Purdue University have pinpointed a gene that produ...
  • Super Food Silage has never gone out of fashion in Bath County, Kentucky, even when the lure of $6- to $8-pe...
  • Farmers Pivot Back After Storms The majority of center pivots damaged by severe weather earlier this summer in Nebraska are up an...
  • Pick Contingency Plans - 3 As crop prices and insurance coverage swoon, farmers may need to supplement incomes with federal ...
  • Weathering the Drought Parts of the panhandle and western Oklahoma are still considered as being in extreme or exception...
  • AFBF Appeal The American Farm Bureau Federation asked a federal appeals court to reverse a lower court's Sept...
  • Pick Contingency Plans - 2 Commodity payments are largely capped at $125,000 per person. People must also report under $900,...
  • Ask the Vet Some tips on fly control.
Related News Stories
Ask the Taxman by Andy Biebl
Ask the Taxman by Andy Biebl
IRS Targets "Passive" Landowners
House OKs Business Tax Breaks
Ask the Taxman by Andy Biebl