Tax Reform: Changes for Farmers

— Written By and last updated by Kerri Rayburn

Tax Reform: Changes for Farmers

Who it affects: Farmers

Key points:

  • The Tax Cuts and Jobs Act changes things for all taxpayers, including farmers.
  • Farmers may want to consult their tax professional to determine how best to take advantage of new rules around:
    • Income averaging
    • Accounting methods and capitalization
    • Treatment of inventory
    • Deductions (including depreciation)
    • Losses

Each farmer’s circumstances are unique. Depending on those circumstances, changes to tax law under the TCJA may have significant effects.

The attached IRS Fact Sheet helps farmers identify the issues and understand the basics. Farmers can use it to ask the right questions when they sit down to prepare their 2018 tax returns.

To help constituents #BeTaxReady to file their 2018 tax returns and stay abreast of the latest on #TaxReform, follow IRS on Twitter and Instagram.

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