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.
- 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 15th and then plan to file their return on April 15th (as opposed to March 1st).
- 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.
- 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.