President Donald Trump has made and proposed several changes in his less than two weeks in office. Tax reform is one of the things to change under his watch.
On AgriTalk Monday, Paul Neiffer, CPA with CliftonLarsonAllen told host Mike Adams it’s “likely” the U.S. will experience tax reform in 2017. Destination-based cash flow tax (DBCFT) could be one to benefit farmers who export products outside the U.S. Those products, according to Neiffer, would be nontaxable.
The downside would be for farmers who import products from foreign countries. Those products would be non-deductible. Neiffer says to some degree, this will be how Trump will pay for a wall along the U.S.-Mexico border.
Nothing is set in stone, and a lot remains to be seen. Neiffer thinks one reform will go through and benefit farmers. Neiffer believes with that reform, American farmers will be allowed to deduct 100 percent of all business investments other than farmland.
One hot-button issue for farmers during the presidential election was the elimination of the estate tax, also known as the death tax. Neiffer says any repeal of the death tax would last roughly 10 years and to “be careful what we wish for.”
Listen to what Neiffer says could replace the death tax and the implications it could have on “richer farmers” on AgriTalk above.