It’s Okay, I Need The Deduction

It's that time of year again.

No, not Thanksgiving. Not Christmas shopping.

If you're a business owner, especially a farmer, you're staring into the face of one full month of "Year-End Tax Deduction" season, specifically my inanimate arch nemesis: Section 179.

Many well meaning sales people and tax advisors will suggest making purchases this December to take advantage of Section 179, calling it wise tax planning. It certainly can be useful under the right circumstances. But remember that even in a best case scenario, accelerated depreciation is only a tax deferral tool. It is never a tax avoidance mechanism.

Bring Me What You Have

“What do you have,” he asked?

“Not enough,” they answered. “Nothing compared to what it will require.”

“No, listen carefully,” he said calmly. “I’m not asking if you have enough. Just bring me what you have. Set it down right here,” pointing to the ground by his feet.

“Bring me what you have; lay it down," he repeated.

“Now here, take what I give you. This will be enough,” he assured them.

[Read four accounts of the whole story here, here, here, and here]