Updated Tax Savings / Cost Examples
About three weeks ago we did a post on whether your income tax from farming would go up or down under tax reform. Since the Senate has now passed their bill, we are providing a new updated table to reflect the new 23% tax deduction for farm income (the old rate was 17.4%).
Here is the old table:
Here is the new table:
As you can see, the savings from the Senate proposal is even greater than what was in the old proposal.
We will keep you posted.
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 principal with CliftonLarsonAllen in Walla Walla, 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. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
I don’t understand the 23% of farm income tax deduction. How does it work?
Is there a limitation? It sounds too good to be true.
Solar farming is getting a push. Does the new bill limit solar benefits? Thank you.