Title: Identify the difference between real depreciation and income tax depreciation.
Course: Operating the Farm Business (18301-III) > Section: Developing and Analyzing Agricultural Production Records

Identification should include

- the concept of depreciation and asset valuation (e.g., when deciding to buy new vs. used farm equipment)
- differentiation between depreciation of assets for value and for tax purposes.

Process/Skill Questions:

- How would a farm owner construct a plan to depreciate farm assets for tax purposes?
- Why would a farm owner depreciate farm assets?
- What types of property can be depreciated for tax purposes?