Farm tax strategies
Farm tax is very complicated and in some cases you will have many options for reporting your income and expenses We can start by walking you through the different farming treatments from hobby farmer to restricted farmer to proprietorship, partnership all the way up to complex corporate structured farming and help you to determine what structure is best suited for your operation.
Reporting your farming income on a cash basis for tax allows you the ability to optimize or “level” your income. You can make sure that you carry forward the lows in your growth years to be able to offset against the higher years when you get a chance to catch up. In high years you have the ability to defer income and prepay expenses to defer taxes. We can help with advanced strategies for everyone from start up hobby farmers all the way to making sure you don’t pay too much when you are ready to wind your farm down or hand it off to the next generation.