Machinery Replacement Decisions and the Tax Reform Act of 1986

Larry VanTassell and Clair J. Nixon

No 270199, 1988 Annual Meeting, August 1-3, Knoxville, Tennessee from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: The decision to trade or sell equipment when purchasing new equipment is examined using a computer simulation model. Income and self-employment tax rates reflecting the current law are integrated into the model. The most profitable alternative prescribed is to sell, elect expensing, and use modified accelerated depreciation. The change in the optimum solution is also examined when various tax modeling methodologies are employed.

Keywords: Agricultural and Food Policy; Farm Management; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 15
Date: 1988-08-01
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea88:270199

DOI: 10.22004/ag.econ.270199

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