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.
The Senate in the early morning hours of January 1, 2013 passed a bill to avert the "Fiscal Cliff". This bill is now headed to the House and it may be passed, not passed or amended and passed back to the Senate for further agreement.
Assuming that the Bill is passed as is, there are several major benefits to farmers included in the Bill:
The phase-out of itemized deductions and exemptions for certain high income earners will be brought back into effect for 2013 and beyond.
Certain extenders have been temporarily extended:
The 2% reduction in the FICA rate for employees from 6.2% to 4.2% was allowed to expire. This will result in a payroll tax increase for all employed workers beginning today.
As we stated at the beginning of the post, this is not the law yet, but if a law is passed by both houses, it is extremely likely that it will retain most if not all of these provisions. We will keep you posted.
No comments have been posted to this Blog Post