There has been no shortage of discussion about tax reform throughout farm country. It’s well documented that some of the provisions, such as the estate tax exemption level, benefit farmers. Other provisions could benefit your farm, depending on how your business is structured. Still other provisions will only benefit your farm under certain circumstances. At the 2018 Top Producer Seminar Brad Palen, Principal and CPA at KCOE ISOM advised farmers to take an extension on 2017 tax returns and seek the help of your CPA to strategize for 2018.
“We’re advising people to extend those returns, let’s not cement those,” he says. “You can work them up but hang on to them until you get a little further into the year because there may be things that come up that will impact what you want to do in 2017.”
There are a lot of changes in the bill, and some of the provisions, like Section 199A, will likely be subject to even more changes in the coming months.
“Get with your advisers talk to them about what’s in it for you," Palen says.
He says KCOE is not only helping its clients understand the changes in the new tax code, but they are also helping them do some scenario planning so they can benefit the most from the bill on their 2018 taxes.
“Anytime we have any change impacting our business, we have to put together a game plan to decide how we’re going to deal with that change,” he says. “Gather some intel and find out what the changes are. Do some research on your own, but more importantly get with your CPA.”