Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2014

1.312 -Expensing Certain Capital Outlays of Farmers

Item DescriptionFY2012 FY2013 FY2014
1.312 Expensing Certain Capital Outlays of Farmers
Farmers may use certain favorable accounting rules. For instance, they may use the cash basis method of accounting and may deduct up to 50% of non-paid farming expenses as current expenses even though these expenditures are for inventories on hand at the end of the year. They also may deduct certain capital outlays, such as expenses for fertilizers and soil and water conservation if they are consistent with a federal- or state-approved plan. Generally, these special rules are not available to farming corporations and syndicates.

Origin:  IRC S. 175, 180 and 182 and Reg. S. 1.61-4, 1.162-12 and 1.471-6
Estimate:  $0.3
0.3 0.3 0.3


IRCFederal Internal Revenue Code (26 U.S.C.)
U.S.C United States Code
M.G.L. Massachusetts General Laws
Rev. Rul.; C.B. Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES All estimates are in $ millions.

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