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IRS tax rules important for farmers to know

Friday, April 30, 2010

Farmers should keep tabs on tax rules for agricultural equipment.
Farmers should keep tabs on tax rules for agricultural equipment.

Just as knowing how to handle farm equipment in the field is important for a producer, so is being able to deal with the taxes associated with a farm.

According to SoutheastFarmPress.com, Lowell Taylor, a certified public accountant based in Williamston, North Carolina, held a discussion session with farmers during a meeting of the North Carolina Corn Growers Association. One of the keys for producers is knowing how farm equipment is treated by tax rules.

Taylor said the tax regulations governing the depreciation for agricultural equipment can change from year to year.

"Last year we could spend up to $250,000 for a piece of farm equipment," Taylor said. "In 2010, on the same piece of equipment the depreciation allowance is reduced to $134,000."

Other areas where farmers may find some tax benefits include the amount they pay for things like feed, seeds and fertilizer. Furthermore, farmers may be entitled to some relief through losses attributed to their farm operation.

Some losses may come as the result of a natural disaster, and the U.S. Department of Agriculture has a number of programs that can help farmers facing these problems. More information is available at the USDA's website, www.usda.gov.ADNFCR-2034-ID-19754856-ADNFCR

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