Born to depreciate. Photo by Flickr user Benjamin Golub; published under Creative Commons license.
Q: How is a milk cow like a fax machine?
A: She can be written off as a business expense. And under a new federal law proposed by U.S. Senator Chuck Schumer, D-NY, more of New York State's roughly 600,000 working dairy cows would get deducted annually from the farm bottom line as "capital expenses."
The bill, which Schumer plans to introduce, is aimed at helping not just dairy farmers, but several New York State Greek yogurt manufacturers that have been growing rapidly over the past several years, and showing an insatiable appetite for New York State milk.
Currently, the only time a cow can be written off as a capital expense is when she's just getting started in her dairy career. Once she's already producing milk, even if she changes hands, the buyer cannot write her off as a business expense. (That's a difference between cows and fax machines: A business can buy a used fax machine and deduct it as a "capital expense" on the company's taxes.)