WASHINGTON, DC -- On Tuesday, the Senate passed H.R. 5771, the Tax Increase Prevention Act of 2014. The $42 billion tax package applies tax breaks to the 2014 tax year, retroactively and until December 31, 2014. Included in the legislation was an extension for Section 179, which according to Senator John Hoeven (R-ND) is "one of the most important provisions in the act" and provides a "depreciation and expensing provision for small businesses," including farms. Section 179, which has been reinstated to the original limit of $500,000, allows small business owners to immediately depreciate 100 percent of a capital purchase, avoiding the hassle of depreciation over time and simultaneously lowering taxable income.
Full story