Provisions in a key piece of legislation called the Tax Cuts and Jobs Act are set to expire in 2025, and that could hurt farmers and ranchers.
American Farm Bureau’s Dustin Shearer tells why.
“If nothing is done to extend them beyond 2025, farmers will face well over a $9 billion tax increase in 2026 between increased income tax liability and the increased estate tax liability. According to that report, the expiration of 199A alone would see certain farms’ tax liability increased by up to 20 percent.”
Shearer says it is important to know your tax liabilities and advocate for reauthorization of these provisions.
“Arm yourself with information. Do some research or talk to your CPA to understand how these various provisions of the tax code are benefiting your operation and how your operation is utilizing the savings from the provisions enacted by the Tax Cuts and Jobs Act. And once you do that, talk to your elected officials. Tell them your personal story and tell them what the consequences would be if these options went away. Educating elected officials with personal stories is the best advocacy there is.”
The Tax Cuts and Jobs Act was a comprehensive tax cut package enacted in 2017.
