The ‘One, Big, Beautiful Bill’ Depreciation Rule’s Impact on Gifted Ag Equipment

Understanding how these tax provisions interact will be key for farmers planning long-term equipment purchases or transfers within the family.

WASHINGTON, D.C. (RFD-TV) — The recently passed “One Big Beautiful Bill” Act makes 100-percent bonus depreciation permanent for assets placed in service after January 19 of this year. The change is raising questions among producers about whether the rule also applies to processing facilities located on farms.

RFD-TV Farm Legal and Tax Expert Roger McEowen, with the Washburn School of Law, joined RFD-TV to explain the details.

In his interview with RFD-TV News, McEowen breaks down how the new rule works, whether it covers on-farm processing facilities, and the implications for farmers gifting depreciated equipment to their children after retirement.

McEowen also compared how depreciation recapture would apply under the new 100 percent bonus depreciation rule versus Section 179 depreciation. He emphasized that understanding how these tax provisions interact will be key for farmers planning long-term equipment purchases or transfers within the family.

Firm to Farm: Depreciation of On-Farm Processing Facilities; Ag Liens; Gifting Equipment; and Portability

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