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.

  • 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 principal 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 a combine each summer for his cousins and that is what he considers a vacation.

Comments

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.

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