Home / News / Business news / Depreciation plan could help shelter farm profit in 2011

Depreciation plan could help shelter farm profit in 2011

12/13/2010 @ 2:29pm

A provision in the tax legislation before Congress allowing companies to depreciate 100% of their asset investments in 2011 should be particularly beneficial to farmers looking for a tax shelter next year on record profits expected from crops, says J.P. Morgan in a report to investors.
 
The firm cautions though the spending spree on capital equipment could be less than anticipated. Larger farms typically replace machinery on short cycles to begin with, so the accelerated depreciation might be of limited value.
 
Commercial trucks and automobiles also depreciate quickly.
 
Nevertheless, J.P. Morgan predicts the accelerated depreciation could be a big incentive for the equipment rental industry, which has delayed equipment purchases in recent years because of the slump in the construction sector.

(END) Dow Jones Newswires

December 13, 2010 15:20 ET (20:20 GMT)

Copyright (c) 2010 Dow Jones Company, Inc.

CancelPost Comment
MORE FROM DOW JONES NEWSWIRES more +

USDA: Reporting Hog Deaths Required By: 04/18/2014 @ 10:45am The U.S. Department of Agriculture said Friday it will require the pork industry to report…

Wheat Futures Rise as Cold, Drought Threaten… By: 04/17/2014 @ 3:51pm Wheat futures rose for the third time in four sessions on speculation that cold weather earlier…

Ukraine Upheaval Sparks Business Concerns By: 04/17/2014 @ 1:22pm Escalating military action and sanctions are forcing executives around the globe to map out…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Big Picture: CME Trading Weather