May 20, 2022
Fargo, US 46 F

Year End Tax Tips For Farmers

10164159-largeThe 2017 tax season is coming up quickly and farmers have just a few days left to finish up their books. Jan Shaffner is a Senior Tax Consultant Farm Credit Services affiliate Badgerland Financial in Wisconsin. She says the 179 code that just became permanent is a good place to start:
Sec 179
She says any purchases need to be made by the end of the current year:
Deadline
The ability to depreciate the cost of machinery up front can be helpful for farmers, but she says it can also be a bad thing too:
Caution
There are standard years of deduction for agriculture equipment, but the option is available to extend those years to help offset expected lower incomes:
Offsets
Another thing for farmers to consider is putting money into a retirement account to help defer some taxes. She says farmers can find retirement accounts on the market that are similar to what a W-2 employee would be eligible for through an employer.

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