A Note on Accelerated Depreciation and Investment Allowances

Robert A. Douglas, Deborah C. Peterson, Philip Kokic and Bhamathy Parameswaran

Review of Marketing and Agricultural Economics, 1995, vol. 63, issue 01, 16

Abstract: Accelerated depreciation and investment allowances are frequently requested by industry as a means of encouraging investment and promoting the adoption of socially desirable practices by farmers. Examples include the 100 per cent tax deduction for capital expenditure to combat and prevent land degradation (Section 750), and the recently introduced 10 per cent investment allowance for fodder and water storage for livestock, water conveyancing and minimum tillage equipment. Farm level survey data are used to provide evidence of the extent and distribution of benefits to farmers that flow from different rates of depreciation, and from the introduction of a 10 per cent investment allowance. A priori, it may be difficult for the farmer (or farm financial adviser) to determine which depreciation period will provide the largest tax benefit, as the results are dependent on both future taxable incomes, and tax rates.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ageconsearch.umn.edu/record/12539/files/63010225.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:remaae:12539

DOI: 10.22004/ag.econ.12539

Access Statistics for this article

More articles in Review of Marketing and Agricultural Economics from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().