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| Has anyone else been in for a pre-tax planning meeting and came home totally confused? I have used what I would consider a very smart farm tax man for at least 20 years, so he knows our operation very well. After 5 hours yesterday between him, myself, and my wife we all went home terribly confused. It looks like it will all work out eventually but I have never seen my tax man questioning himself so much. It does look like we should be paying less tax, and from what I can see too little in SE tax. I never thought I would say that! The biggest confusion is the depreciation schedule basically moving on to your schedule F. We have always tried to keep a very good amount of depreciation on going (not using more 179 than we need to). That looks like a thing of the past to me. When you have to report any traded item as 100% income and sometimes more if you have ever traded a piece in when it was not totally depreciated and rolled that balance into the new item, and then traded that item in this year. All of a sudden you have to 179 or at the very least use 50% bonus depreciation just to get back where you need to for covering the traded item in that is now considered to be 100% sold. Their are going to be some bankers and bank examiners shaking their head trying to figure out these very upside down looking numbers. Not that much has changed in the big picture, but the numbers are very distorted when you look at them. Just wondering what others are seeing. | |
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Taxes
