What tax laws have changed since last year?
With the new year upon us, financial experts want to make sure you have all the information you need to calculate a tax plan because some tax laws have changed from last year.
“The only thing out there right now that’s maybe major, but not that major is bonus appreciation. Right now, farmers can deduct 100 percent of all their farm assets, except for land, that they purchase - even a building. Starting next year, it’s 80 percent, and then the following year it’s 60 percent, 40 percent, 20 percent, and so on. That’s the only major thing out there on the horizon. Meals that they buy, not for harvest meals, but if they’re taking their CPA out for lunch and they’re paying for the meal, that’s 100 percent deductible this year. Next year it’s 50 percent. So other than that, there’s really nothing major,” said Paul Neiffer with Clifton Larson Allen.
Neiffer, a frequent guest on Market Day Report, says restructuring your business can help a farmer save on taxes while still providing enough flexibility to increase profits.