PARKER, COLO. (RFD NEWS) — Updated tax provisions are prompting renewed interest among farmers in the “75% farm-income exception,” leading to a surge in questions for agricultural CPAs and tax professionals.
Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report to clarify how adjusted gross income (AGI) is defined for farmers and how it applies under current provisions.
In his interview with RFD News, Neiffer addressed confusion surrounding what qualifies as AGI for farmers and how different income sources are treated within that calculation.
He also discussed when equipment gains may automatically be categorized as farm income and how those classifications can impact eligibility under the 75 percent farm-income threshold.
Neiffer highlighted that definitions of farm income may differ depending on the tax context and how specific provisions are applied.
He also outlined additional considerations that farmers should keep in mind when navigating these rules, particularly regarding planning and compliance.
