Planning your next farm equipment purchase? Whether you intend to buy, finance or lease, you may be qualified to take advantage of substantial tax savings under Section 179 if you take possession of that equipment in 2022. As you’re’ thinking about which piece of equipment you want to purchase and knowing the shortage of equipment on dealer’s lots, you might want to start shopping for that new or used pickup that’s long needed replacement.
“In a year like 2022, where USDA is projecting record net farm income, section 179 deductions can be the perfect tool for lowering your tax burden,” notes Paul Kindinger, staff economist for the Certified Agriculture Dealer Program. “It is also a great way to update the investments that will make your farm or ranch more efficient and profitable in the future.”
Where you purchase it will be doubly important this year if buying from a Certified Agriculture Dealer (CAD) because then you’ll be qualified to get an AgPack®.
What’s AgPack you ask? AgPack is an exclusive bundle of farm/ranch supply rebates/discounts you get free with every qualifying new and pre-owned truck purchase from a Certified Ag Dealer. It can be worth more than $30,000* per truck purchase. But you need to act quickly, there’s less than three weeks left to get that Section 179 write off, but the good news is you will have a whole year to take advantage of the AgPack savings.
The IRS limits the kinds of assets that can be expensed with a Section 179 deduction, as well as the amounts of the deductions. This deduction process for some can be complicated, so check with your tax professional when you’re considering a Section 179 deduction.
Need to find the right truck at a CAD quickly? It’s easy. Just go to AgTruckTrader.com. and immediately begin browsing eligible pickups at CADs nationwide. You don’t have to scour the internet looking for Certified Ag Dealers that may, or may not, have the truck you need. You can search all their inventories at once, by truck brand, dealer, or location, knowing that every truck you find is AgPack eligible.
And while on the site, you can get your lifetime AgPack® ID# that will stay with you for all your future truck buying purchases so you get an AgPack with every truck.
So don’t dally, you must put that equipment into use by December 31st to get the 179 deduction. Start searching and save on both taxes as well as on your farm/ranch operating expenses.
*Based on customer using every AgPack® benefit, to its maximum value.