General
Hey Guys, it's looking to be the first year in a while that I'll have a profit on the farm. Especially being that I've had 1.5 years worth of harvests this year.
I've been reading a little about bonus depreciation and what not. I don't really want to buy a new pickup and I'm not necessarily dying for any equipment on the farm.
Other than prepaying expenses, what year end strategies do you guys have to decrease your tax burden?
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Just my opinion, but you may consider paying a little more tax this year if you don’t really need anything. I suspect the 12% tax bracket may disappear soon. At least go back to the 15% it was prior to the tax cuts. So, maybe bite the bullet this year and lower next years taxes with any depreciation/expenses.
What do the rest of you think?
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Have the elevator hold your grain check until after the first of the new year.
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(edited)
Some of that depends on how your farm operation is set up. For example, if you are a sole proprietor you might be able to file using income averaging which takes into account your tax returns / taxable income for the last 1-3 years and averaging certain fields over those years.
* A really good accountant is well worth the money.
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