Good News for Feedlots

In a post last week, we had discussed the new business interest rules regarding farmers and the special election they could make to deduct all business interest even if their revenues were over $25 million.  We had speculated that a feedlot operation may be considered part farming and part non-farming.

After doing a little more research, a feedlot operation is considered to be in the business of farming even for cattle it does not own but simply feeds.  This means all of a feedlot operator with revenues over $25 million can elect to deduct 100% of its business interest.  This is good news for those feedlots that have a combination of both.

  • Principal
  • CliftonLarsonAllen
  • Walla Walla, 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 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.

Comments

Wondered what your thoughts were on the new QBID and how it will affect our farmers?

I know that I have posted on this fairly often this year. In general, this will be a deduction for farmers that is beneficial, but the bottom line is they need taxable income to get much benefit.

I love your posts. Have you heard anything yet about the Carryover Losses for Farmers? I have a client wanting to know if they should or could take in any more revenue for 2018. They have a large NOL from prior years. Any news on those rules yet?

Thank you again for your valuable information.