Clements: Farmers and ranchers are welcoming the tax reform package signed by President Donald Trump late last year. At the American Farm Bureau Federation’s 99th Annual Convention, AFBF tax specialist Pat Wolff says the bill means lower taxes for most farmers and ranchers.
Wolff: Tax rates are going down. So, that’s good for big, small, all kind of farmers. The estate tax exemption is up. There are very few farmers who will have to worry about estate taxes going down the road. And, there’s lots of good things in here for farm management: increased expensing, cash accounting, the deduction for interest.
Clements: The tax changes are in effect now, so farmers and ranchers should take a second look at some aspects of their business planning.
Wolff: It won’t impact the tax returns that are being filled out right now, but it will be in full force for 2018. That means some planning is needed and farmers and ranchers should be talking with their accountants to figure out the best way to make the new provisions work for them.
Clements: She says farmers are excited to see the full impact of the bill.
Wolff: Farmers and ranchers are eager to learn all the details of the new tax bill. Unfortunately, it’s going to take a little while for the IRS to write the rules, but we know the topline items and we can use those to project savings on farms and ranches.
Clements: Micheal Clements, Nashville.