Agricultural producers have until March 2, 2015, to file their 2014 income tax returns without penalty if they have not made estimates.
“Producers have until April 15 to file without penalty if they have paid their estimated tax by Jan. 15,” says Ron Haugen, North Dakota State University Extension Service farm economist.
Items to note for 2014 income tax preparation:
* The 179 expense election for 2014 is $500,000. Generally, the 179 expense election allows producers to deduct up to $500,000 of machinery or equipment purchases for the year of the purchase. There is a dollar-for-dollar phase-out for purchases of more than $2 million.
* The additional 50 percent first-year bonus depreciation provision is in effect for 2014. It is equal to 50 percent of the adjusted basis after 179 expensing. It only applies to new property that has a recovery period of 20 years or less.
* The standard deduction is $12,400 for those who are married and filing jointly. The deduction is $6,200 for singles.
* The personal exemption amount is $3,950.
* Long-term capital gains and qualified dividend income is taxed at a 0 percent rate for individuals in the 10 or 15 percent tax brackets and at 15 percent for those in the middle brackets and 20 percent for those in the top income bracket.
* The annual individual retirement account contribution is $5,500 for 2014 or $6,500 for individuals 50 or older.