Tax Reform: Changes for Farmers in 2018

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Key points:

  • The Tax Cuts and Jobs Act changes things for all taxpayers, including farmers.
  • Farmers may want to consult their tax professional to determine how best to take advantage of new rules around:
    • Income averaging
    • Accounting methods and capitalization
    • Treatment of inventory
    • Deductions (including depreciation)
    • Losses

Each farmer’s circumstances are unique. Depending on those circumstances, changes to tax law under the TCJA may have significant effects.

What’s New for Farmers in 2018?

This IRS Fact Sheet helps farmers identify the issues and understand the basics. Farmers can use it to ask the right questions when they sit down to prepare their 2018 tax returns.

Social Media Resources:

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To help constituents #BeTaxReady to file their 2018 tax returns and stay abreast of the latest on #TaxReform, follow IRS on Twitter and Instagram.