We would like to remind everyone about the increased Section 179 allowances included in the Economic Stimulus Act.

• The act temporarily increases the Section 179 expense allowance for new farm machinery from $128,000 to $250,000 for taxpayers with total capital investments of $80,000 or less. That's nearly double the previous maximum!
   
• Units leased with the $1.00 purchase option and put into service by December 31, 2008 may
  also qualify for the increased allowance.
   
• Individuals may also benefit from the 50% Bonus Depreciation for first year qualifying Materials Handling equipment that is acquired between January 1 and December 31, 2008. Note this expires at the end of 2008.

The ability to write off a larger part of your equipment purchase price could present a major savings, which you may see as expanded buying power. Sample calculations show a hypothetical farmer seeing over $333,000 in increased tax savings when purchasing $400,000 in equipment.

For more information on this one-year only, accelerated write-off opportunity, contact Bryan Semke at the OVS McMinnville store - click here for store and contact information.