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Is This A Good Year To Upgrade Or Purchase Farming Equipment?

Farm Business Purchase Equipment
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Tax Professional Answers

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Sean Fogarty
Maybe - leaning to Yes - depending upon the type of farming that you do and your cash flow - with increased government direct payments this year farmers who participate in government programs are having a better year than 2019. Some commodities such as milk and soybeans enjoyed better prices. Available cash can be reinvested in any necessary farm equipment upgrades. When you make equipment buying decisions please factor in any increased efficiencies such as labor savings and avoided repairs into your calculations. Equipment buys should be more than simply a decision to reduce your tax liability at year end.
Have a question about your farming business? Contact: Sean Fogarty CIA EA
Fogarty Enterprises LLC
Leave a Comment 54 weeks ago

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Sean Fogarty
An update to the comment above - here in Central Minnesota 90% of my farm clients chose to upgrade their farm equipment and/or prepay feed/seed and other crop inputs to bring their tax liability down. I worked closely with them to project the best scenario and these expenses were paid and equipment placed in service by 12-31-2020.
Reply 45 weeks ago

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