New Tax Benefits
From the Ag Information Network, I’m Bob Larson. With the April 15th tax deadline in a couple of days, farmers are looking for shelters and other benefits they may not have had in the past.
Two such provisions came from last year’s One, Big, Beautiful Bill Act.
USDA Under Secretary for Farm Production and Conservation, Richard Fordyce says one to take note of is a $15 million estate tax exemption …
FORDYCE … “Thinking about, you know, a typical farm and the value of that real estate that can be very impactful. Without this, the heirs may have to sell part of the farm to pay the taxes or get a loan to pay the taxes. So, a $15 million estate tax exemption is really important.”
Fordyce says Congress and President Trump also added a Bonus Depreciation Clause …
FORDYCE … “Now, after the passage of the One Big, Beautiful Bill, a farmer, rancher, they're able to expense 100% of the cost of some of those bigger capital items, tractor, combine, whatnot, but can expense that instead of having to depreciate that over five years or seven years. So certainly, a couple of provisions in there a lot of folks aren't talking a lot about, but very important to the farm businesses and ranch businesses across the country.”
Fordyce adds these benefits have no sunset clause, so should remain permanent.
As always, check with your tax advisor for more information before filing.
