Latest industry Trends Watch:
Spader Online Services
Advertise with NAEDA > >
Follow us on Twitter > >
Congress threw U.S. agriculture a curve ball when it let accelerated depreciation virtually vanish in 2014. The popular 50% bonus depreciation sunset Dec. 31. More painful, instead of $500,000 of Sec. 179 capital improvements eligible for first-year tax writeoff, your new limit is only $25,000. (Don't have a panic attack--DTN's tax columnist Andy Biebl expects Congress to retroactively lift that ceiling to $140,000 or so, but that's not set in concrete yet. John McNutt, a consultant with Latta Harris in Tipton, Iowa, speculates the ceiling could be $200,000 or even $250,000.)
The retail-worker strikes that swept the nation in 2013 did not move Congress to raise the minimum wage, but a growing number of states are taking action.
NAEDA submitted comments to the Senate Finance Committee on December 16th that listed a set of requested actions that the committee should consider as part of their Cost Recovery and Accounting Discussion Draft Comments. NAEDA's requested actions were:
• Make permanent the bonus depreciation and Section 179 provisions enacted under The Small Business and Work Opportunity Tax Act of 2007, the Economic Stimulus Act of 2008 and the American Taxpayer Relief Act of 2012.
• Change the farm and ranch equipment assigned class life to five years for depreciation purposes. This will match the same assigned class life of construction equipment.
• Modify the current depreciation schedules for buildings and their contents to accurately reflect actual lifetime usage rates and specialty uses to match industry’s needs.
• Do not repeal Last-in, First-out (LIFO) accounting method.
• Delete IRC Section 263A of the IRS Code.
Beginning December 31, 2013, changes will be coming to the minimum wage level for many states. Defined by the Fair Labor Standards Act (FLSA), the federal minimum wage is set at $7.25. However, the federal minimum wage level does not supersede any state or local laws.
The Internal Revenue Service set the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Congress is getting ready with conference committees to meet their deadline of December 13 for a budget “reconciliation” under the Continuing Appropriations Act of 2014. Below are eight (8) links to YouTube videos created by the staff at the Institute for Humane Studies (IHS), which is part of the Mercatus Center at George Mason University.
The ‘Look Before You Pump’ education campaign cautions consumers that it is harmful and illegal to use higher than 10 percent ethanol gas in any outdoor power equipment, such as mowers, chain saws, snow throwers, UTVs, generators and other small engine products.
The Congressional Research Service has issued a new report "Budget Issues Shaping a Farm Bill in 2013" on October 21, 2013. The report states:
The budget situation for the farm bill is more difficult this year than for recent farm bills because of attention to the federal debt. The desire by many to redesign farm policy and reallocate the remaining farm bill baseline—in a sequestration and deficit reduction environment—is driving much of the farm bill debate. Uncertainty persists about broader deficit reduction plans, some of
which have targeted agricultural and nutrition programs with mandatory funding. Much of that uncertainty affects the farm bill but is beyond the control of the agriculture committees. Moreover, some popular 2008 farm bill programs do not have a baseline that would provide continued funding and thus will require budgetary offsets to continue.
In December 2013, NAEDA conducted a readership survey for our monthly publication, Equipment Dealer. The purpose of the survey was to identify whether our current editorial content was in line with readers’ needs, as well as solicit additional topic content for the future.
Free Webinar to Watch on How to Achieve Greater Success in Hiring National Guard Members and Other Veterans