“This year, tax planning is really important for farmers,” explained Dario Arezzo, Farm Credit East senior tax consultant. In this video, Dario discusses some of the provisions that were eliminated, including DPAD, which has been replaced by new deductions, and also the higher expensing limitations.
“Being proactive this year is particularly important regarding the new section 199A deduction for all taxpayers, except C-corporations,” Dario said. “There are ways to optimize section 199A, but it will require proactive thought and analysis during this year’s tax planning season.”
Agricultural taxation and tax laws are already complex. This makes tax planning important for farm business throughout the year, not just during tax season, especially when producers start to think about new investments.
Key to tax planning is being proactive. “Any time a farmer is looking to buy assets, it’s always best to meet with a tax advisor beforehand to talk through the tax implications of every deal,” Dario explained.
Farm Credit East offers new tax customers a free comprehensive review of the prior year’s taxes. “This review is a beneficial way to start the conversation,” said Dario. “Farm Credit East tax experts can find specific provisions relating to agriculture on your tax return that may not have been optimized for you in the past.”
To view this short video and for more information on Farm Credit East’s tax services, click here.