Real Estate Tax Limitation

I seem to get this question a few times a week so I want to address it.  The question usually relates to whether you can continue to deduct your real estate taxes on your farm land rental or farm business.  The bottom line is yes, you will continue to deduct 100% of your business and rental real estate taxes.

The only change proposed by both the House and the Senate is to limit the itemized deduction for real estate property taxes on your home or other personal real estate to $10,000.  For most farmers, their real estate tax on their personal residence is well under $10,000, so there should be no change for almost all farmers.

These new tax proposals are confusing and we will continue to provide guidance.

 

  • 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).

Comments

Thanks again, Paul. Your analysis is very pertinent!

I always look forward to your advice and comments.

Question: capital gain treatment is not discussed in tax bill summaries. What will it likely be going forward?

Thanks!

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to Our Email List

* indicates required