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| Plowboy:
No, Sec179 doesn't have to be on new, but the logic still holds. For example, if I like to buy a slightly used machine and hold it for several years I might switch to trading the same vintage machine more frequently given Sec179. The decision to buy new vs. used hinges on much more than the tax decision of course. Nonetheless, being in a high tax bracket and having access to faster-than-market depreciation schedules encourages buying newer than you otherwise would and trading more frequently than you otherwise would.
Terry Kastens, ag economics, Kansas State University | |
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"Long run" and the life of an operation
