PR - DEPRECIATION: BALANCING THE SHORT GAME AGAINST THE LONG GAME - A UNITED STATES PERSPECTIVE

Abstract

This paper discusses and illustrates potential financial risk exposure farmers and ranchers may have as a result of accelerated depreciation options in the United States. The recent passage of tax reform legislation in the United States provides mechanisms to significantly reduce business generated taxable income. However, farmers and ranchers should consider mid- to long-term implications of making current year depreciation decisions relative to financial risk exposure of their agricultural businesses.

Keywords: depreciation, financial risk, management