New Year Means Changes in Tax Code for Ag

The arrival of 2017 brought IRS updates relevant to members.

The Section 179 deduction is now limited to $500,000 on new, used or leased equipment until further notice. For the 2016 and 2017 tax years, the special 50 percent bonus depreciation can be taken once Section 179’s $2 million spending cap is reached—on new equipment only. The bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.

A big change is that W-2s and 1099 forms for 2016 must have been filed with the IRS and Social Security Administration by Jan. 31. Under the old law, businesses were required to send 1099 and W-2 forms only to employees and payees by Jan. 31.

Standard mileage rates decreased by a half-cent to 53.5 cents.