Farm Credit East Releases Summary Report
Farm Credit East has released a report summarizing the provisions of the recently passed federal tax law that will affect agricultural producers in 2018. The report, prepared by Farm Credit East tax experts, reviews key provisions as they relate to agriculture and other rural businesses. The new tax legislation recently signed by President Trump is the largest overhaul of the U.S. tax code in 30 years.
“Our Farm Credit East tax team closely followed the enactment of the 2017 Tax Cuts and Jobs Act as to what it would mean for Northeast producers. We are pleased to share this early summary of key provisions,” said Jim Putnam, Farm Credit East chief business officer. “As always, producers are encouraged to contact their Farm Credit East tax specialist for advice as to their specific situation.”
This report breaks down the adjustments to tax brackets and outlines the key provisions specific to farmers, such as accelerated depreciation, interest deduction limits, cash accounting and like-kind exchanges. It also discusses the impact on cooperatives, pass-through entities, and breweries, distilleries and wineries. Finally, the paper covers changes to standard deductions, state and local tax deductions, and the alternative minimum tax.
“Overall, the new tax provisions will provide significant benefits to Northeast farmers, however certain provisions will unfortunately limit the value of the new law for some producers,” said Dario Arezzo, Farm Credit East senior tax consultant and one of the report’s authors.
As the leading credit and financial services cooperative in the Northeast, Farm Credit East provides specialized tax preparation and planning to farmers, forest products businesses and commercial fishermen throughout the Northeast.
To view the full report, What the New Tax Law Means for Northeast Agriculture, or for more information on Farm Credit East tax planning and preparation services, please visit FarmCreditEast.com.