2019 Tax Season Strategies in Light of the Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act (TCJA) is a historic update to the U.S. tax code. As the 2019 tax season approaches, its impact will be felt by the vast majority of taxpayers. In a recent article for AgWeb, Paul Neiffer takes a look at how the TCJA will bear on the agriculture industry and offers three recommendations.

1. Make your payments – With the expectation that things will take longer than usual, Neiffer recommends that farmers make an estimated income tax payment on January 15^th and then plan to file their return on April 15^th (as opposed to March 1^st).
2. Consider the self-employment tax method – It might be beneficial to use the optional self-employment tax method, rather than filing a schedule F tax return.
3. Avoid showing losses – Consider electing out of bonus depreciation and then reducing taxable income using Section 179.

For more details, read the article in full at AgWeb. Be sure to contact a De Boer, Baumann & Company tax professional for guidance on your specific situation.