This farmdoc webinar, by Bob Rhea and Brad Zwilling from Illinois Farm Business Farm Management (FBFM), will provide an overview of recent changes to federal and state depreciation rules, including the phase-out of 100% bonus depreciation and Illinois’ elimination of bonus depreciation. We will explain the implications of these changes for farmers’ taxes and offer planning strategies.

OUTLINE:

– Background on farm depreciation and how it works
– Federal changes: Bonus depreciation reduced from 100% to 80% for 2023, then 60% for 2024
– Illinois does not allow any bonus depreciation
– Avoiding surprising results on farmers’ taxes: Lower deductions, higher tax bills
– Reporting requirements: Full purchase price and trade-in value
– Planning strategies: Optimize Section 179 expensing, Multi year purchases, self-employment tax impact