Farming and Depreciation - YouTube video text script

FARMING AND DEPRECIATION. 

DO YOU OWN A FARM OR AGRICULTURE BUSINESS? 
    
IF SO… THERE ARE NEW DEPRECIATION RULES THAT CAN HAVE A BIG EFFECT ON HOW YOU FIGURE YOUR FARM INCOME.  
    
FOR STARTERS… THE RECOVERY PERIOD FOR CERTAIN NEW MACHINERY AND OTHER EQUIPMENT USED IN YOUR BUSINESS HAS BEEN SHORTENED FROM SEVEN TO FIVE YEARS.
  
THIS SHORTER RECOVERY PERIOD IS FOR ELIGIBLE NEW PROPERTY YOU PLACE IN SERVICE AFTER DECEMBER 31ST… 2017.
    
THIS MEANS YOU WILL BE ABLE TO WRITE OFF THE COST OF MOST NEW MACHINERY AND EQUIPMENT A LOT FASTER.
    
AND IF THAT’S NOT FAST ENOUGH FOR YOU… THERE’S ALSO A NEW 100-PERCENT DEPRECIATION DEDUCTION THAT NOW ENABLES YOU TO DEDUCT THE FULL COST OF MANY KINDS OF PROPERTY IN THE YEAR YOU START USING IT IN YOUR BUSINESS.
    
THERE ARE ALSO OTHER CHANGES THAT AFFECT HOW DEPRECIATION IS FIGURED AND SPECIAL RULES THAT APPLY IF YOU ELECT OUT OF THE NEW INTEREST DEDUCTION LIMIT.
    
SO IF YOU’RE A FARMER... THESE TAX LAW CHANGES TO DEPRECIATION CAN REALLY AFFECT YOUR BOTTOM LINE.
    
FOR MORE INFORMATION… CHECK OUT PUBLICATION 225… THE ‘FARMER’S TAX GUIDE” AND PUBLICATION 946… “HOW TO DEPRECIATE PROPERTY.”
   
YOU CAN GET THEM AT I-R-S-DOT-GOV-SLASH-PUB-2-2-5 AND I-R-S-DOT-GOV-SLASH-PUB-9-4-6.