Many people are wondering exactly how the sweeping “Tax Cuts and Jobs Act” will impact their personal tax returns and what the law might mean for agriculture.
I’m no tax law expert, but luckily, I know someone who is! I was fortunate to have Kristine Tidgren from the Iowa State Center for Ag Law and Taxation join me on a recent episode of the Ag Law in the Field Podcast to discuss the ins and outs of the new tax reform law. You can listen to the podcast episode on your favorite podcast app, or on your computer by clicking here.
Additionally, Kristine and her crew at CALT put together a great blog post highlighting the details of the provisions most likely to impact those of us involved in agriculture. You can find that here. Another great summary was done by Delta Farm Press and you can find that here.
A quick update to something discussed by Kristine on the podcast and in the summary, last week Congress and USDA announced they would attempt to change a provision in the current law Section 199A that gives cooperatives a purchasing advantage for grain over independent elevators. Currently, farmers can deduct 20% of gross sales to cooperatives, but only 20% of net income if they sell to another purchaser. Several Congressmen and USDA says this was not the intent of the law. USDA Under Secretary says “The federal tax code should not pick winners and losers in the marketplace.” [Read article here.]
Finally, the American Agricultural Law Association will be hosting a free webinar on Tuesday, January 30 from 12-2 CST to talk all about the new law and how it may impact agriculture. The webinar is open to anyone (lawyer or not). You can register here.
At the end of the day, the best thing for folks to do is be in contact with an accountant or tax professional to be sure they are clear on how these changes may impact their operation and to determine what changes may need to be made given the new laws.