As Year-end approaches, horse and farm owners should evaluate how the One Big Beautiful Bill Act (OBBBA) affects both 2025 and years to come.
Understanding these tax changes now can help you make informed decisions before December 31.
Understand the Impact of 100% Bonus Depreciation
OBBBA permanently extended 100% bonus depreciation for assets purchased and placed in service after January 19, 2025. For 2025:
• Confirm the correct bonus depreciation percentage: either the enhanced 100% or the applicable percentage for assets purchased before January 20, 2025.
• Keep in mind, many states do not follow this increased 100% bonus depreciation, so it is important to check your state’s rules to see if you receive a state tax benefit in addition to the Federal tax benefit.
Increasing Current Deductions
If your goal is to accelerate deductions this year, consider purchasing and placing in service (meaning the asset is ready for its intended use) qualifying assets by December 31, 2025.
