Seeing red ink on the balance sheet is not fun, but for those farmers and ranchers who need help, The Farm CPA Paul Neiffer has some salient tax advice.
“If a farmer is in the red but they’ve been positive in the past, they definitely should be meeting with their tax adviser to optimize the amount they should carry back to get a refund from previous years,” he says.
Farmers who have a tax loss from farming for this year, they can carry it back to 2011 and free up some tax money.
“They could then use that money to fund their operations, to pay down the bank loan, to get them through this year,” Neiffer says.
Neiffer shares some additional advice about getting past this down market: