The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
We did a blog post back on April 23, 2019 regarding a need for clarity on qualified business income (QBI) and farm income averaging. The original one sentence guidance posted to their website indicated that a farmer could only report farm QBI based upon the amount of income elected for farm income averaging.
In our post, we indicated that this made no sense since farm income averaging is simply a method of calculating income tax and in many cases a farmer would want to elect no farm income (since prior years income is higher would be one example).
We have gotten new guidance that this original guidance was incorrect and has been removed from the IRS website. Corrected information should be posted this week. Once we get that information, we will provide a post on it.
Now if we can only get the proposed regulations on Section 199A and cooperatives.
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