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Congress Must Act Before End of the Year to Save Expiring Income Tax Rules

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Unless Congress acts several federal income tax regulations that affect agricultural producers will expire on December 31st. North Dakota State University Extension Service Farm Economist Ron Haugen says the section 179 expense election is 139-thousand dollars for this year – but it scheduled to revert to 25-thousand next year. Haugen says this year is the last for bonus depreciation – which is at 50-percent and available for qualifying property placed in service in 2012. He says the expiring provisions will impact farmers’ ability to reduce taxable income. Another expiring regulation is the two-percent temporary payroll tax cut – which affects people who are self-employed and employees. The long-term capital gain rates will increase from zero for those in 10 and 15-percent brackets and from 15-percent for those in higher tax brackets to 20-percent. Also – dividends with this treatment will be taxed at ordinary tax rates – which have ranged from 10 to 35-percent – but will increase to between 15 and 39.6-percent.

Source: NAFB News Service



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