I don't understand the idea of farmers spending on machinery to avoid taxes with depreciation. That only defers the tax short term and increases your machinery cost. No? A farmer has to pay some pretty huge taxes to really get ahead. Or can you actually defer the taxes enough to actually gain? When you sell that machinery it's still taxed as ordinary income in most cases, is it not?
Would someone explain this mentality of buying just for the depreciation.
Another question... If you have a large tax liability, are there commercial investments that you can take rapid depreciation on to defer the tax. something that will not increase my costs and could be considered capital gains after 10 years.
Depreciation
