Agribusiness BlogFarm CPA Today

A freebie from the IRS

orange-trees1There was a new law passed last year that allows all taxpayers that use the standard deduction to take an extra deduction of up to $1,000 for real estate taxes paid on a personal residence.  This deduction is in addition to the standard deduction.  This deduction applies to farmers who do not itemize their deductions.

I know that many farmers do not itemize their deductions.  This is normally due to their house being paid off and living in a state with low or no income taxes.  If this applies to you this year, please make sure to talk to your tax advisor about this special extra deduction.  It may not be a large deduction, but it is still worth up to $350 or more for farmers in the highest tax bracket.

  • Principal
  • CliftonLarsonAllen
  • Yakima, Washington
  • 509-823-2920

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a partner with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).

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