The following information is provided by Nationwide, the No. 1 farm and ranch insurer in the United States.

Buy, lease or hold the old? Some changes in tax law will impact decisions you as a farm operator make over the next several years. These decisions may center around farm equipment, livestock and other assets that depreciate.

A new law revised the rules around depreciation and will allow full and immediate expensing for purchases over the next several years. The new law, however, ended like-kind exchanges (the replacing of a depreciating asset without paying the taxes on the new item), and that can affect the way you approach your personal property, such as equipment and livestock and the taxation of these assets.

The nitty gritty: The rule on expensing and bonus depreciation was changed to permit full expensing of most newly purchased depreciable property used in a farming operation through 2022. Arguably one of the largest changes to depreciation is the expansion of Internal Revenue Code section 179 to allow used equipment to receive the same treatment as if it were “new.”

Questions to ask yourself:

•    What type of depreciation makes sense for my operation?
•    Should I consider using a mixture of bonus depreciation and straight-line depreciation?
•    What are the tax implications if I have highly depreciated equipment that I need to sell?

What it means for you: From a tax standpoint, farmers will now need to think more strategically when buying and selling farm equipment and other farm items. They may consider alternative methods like using a charitable remainder trust to sell a property to avoid paying tax on the sale.

When thinking about using a charitable remainder trust or other business planning strategies it’s important to enlist the help of qualified professionals who don’t have a stake in the final decisions. Qualified professionals may include your banker, your accountant, your personal attorney or a financial or estate planner.

If you would like to help in finding a qualified professional to speak with, contact the Nationwide Land As Your Legacy team at [email protected] or toll-free at 1-855-529-2729.

Neither Nationwide, nor its employees, its agents, brokers or registered representatives gives legal or tax advice.
Nationwide, the Nationwide N and Eagle, Nationwide is on your side and Land As Your Legacy are service marks of Nationwide Mutual Insurance Company. © 2018 Nationwide LAM-2930AO (04/18)
Labor has always been an issue, mainly because we are a seasonal operation. So that's a challenge finding somebody who only wants to work three months out of a year, sometimes up to six months.
Mandy Way's avatar
Mandy Way

Way Farms

Farm Labor Resources
I appreciate the benefit of having a strong voice in my corner. The extras that are included in membership are wonderful, but I'm a member because of the positive impact to my local and state agricultural communities.
Ernie Welch's avatar
Ernie Welch

Van Wert County Farm Bureau

Strong communities
I see the value and need to be engaged in the community I live in, to be a part of the decision-making process and to volunteer with organizations that help make our community better.
Matt Aultman's avatar
Matt Aultman

Darke County Farm Bureau

Leadership development
Farm Bureau involvement has taught me how to grow my professional and leadership experience outside of the workforce and how to do that in a community-centric way.
Jaclyn De Candio's avatar
Jaclyn De Candio

Clark County Farm Bureau

Young Ag Professionals program
With not growing up on a farm, I’d say I was a late bloomer to agriculture. I feel so fortunate that I found the agriculture industry. There are so many opportunities for growth.
Jenna Gregorich's avatar
Jenna Gregorich

Coshocton County Farm Bureau

Growing our Generation
Knowing that horticulture is under the agriculture umbrella and having Farm Bureau supporting horticulture like it does the rest of ag is very important.
Jared Hughes's avatar
Jared Hughes

Groovy Plants Ranch

Groovy Plants Ranch
If it wasn't for Farm Bureau, I personally, along with many others, would not have had the opportunity to meet with our representatives face to face in Washington.
Austin Heil's avatar
Austin Heil

Hardin County Farm Bureau

Washington, D.C. Leadership Experience
So many of the issues that OFBF and its members are advocating for are important to all Ohioans. I look at OFBF as an agricultural watchdog advocating for farmers and rural communities across Ohio.
Mary Smallsreed's avatar
Mary Smallsreed

Trumbull County Farm Bureau

Advocacy
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