This calculator may be used to estimate your potential tax reduction for investments qualifying under the Jobs and Growth Tax Relief and Reconciliation Act.
Enter or select the values as appropriate for your farm and click the Recalculate button
Instructions
Enter the Cost or the Adjusted Basis of the Asset up to the $400,000 maximum and
Click the Recalculate button
Cost is usually the Purchase Price when no trade-in allowance is involved.
Adjusted Basis is usually the Purchase Price minus the Trade-in Allowance plus any Basis remaining in traded item.
Instructions
Select the Depreciation Life of the Asset and Click the Recalculate button
Most tax advisors suggest using
7 years for tractors and other farm machinery and
5 years for trucks and other automobiles
5 years for computers and other office machinery
Instructions
Select the Depreciation Method for the Asset and Click the Recalculate button
Most tax advisors suggest using 150% Declining Balance Method for depreciating most farm-related assets.
Instructions
Select your Marginal Federal Income Tax Bracket as appropriate for your filing status and taxable income.
This value is used to calculate the tax reduction from your purchase and its associated tax reduction benefits from Section 179 Expensing, Bonus Depreciation and Standard Depreciation.
Instructions
Section 179 Expensing permits up to $100,000 in expense deductions in the First Year an asset is placed in service.
Instructions
For the Amount Over the Section 179 Limit, 50% is deductible in the First Year.
Instructions
Standard Depreciation applies to the First Year, in addition to Section 179 Expensing and the First Year
Bonus 50% Depreciation.
Standard Depreciation also applies to later years, but is greatly reduced due to the deductions taken in the First Year.