The Tax Relief Act authorizes a significant investment incentive for breeding stock buyers this year in the form of the $500,000 expense allowance. This incentive allows buyers to write off up to $500,000 worth of qualified depreciable property, such as a broodmare, on their tax return. Please refer to the resources below for more information.
- Tax Benefit Message for Breeding Stock Sales (NTRA video)
- Major Tax Benefits for Buyers (article by Thomas A. Davis)
- Short Summary of 2011 Tax Benefits
The expense allowance is schedule to drop to $125,000 next year.
Please consult your tax advisor to plan your purchasing strategy for the breeding stock sale season.