Tax planning ‘more important than ever this year’
Tax planning is important for farmers every year, but a farm financial consultant says it is even more so this year.
Tina Barrett with Nebraska Farm Business says many farmers will have significantly higher income to report.
“Just, if nothing else, with the amount of programs out there from the stimulus—whether we’re talking about the PPP loans or the CFAP payments—there’s a lot of additional revenue out there,” she says.
Barrett says that will make tax planning more challenging this year.
“We need to have discussions on when that PPP forgiveness is coming because it’s going to have an impact on your tax return. And there needs to be decisions made about the timing of sales of crops. So tax planning on an individual basis is just going to be as important, or more important, than ever this year.”
Barrett says it’s important to seek the advice of a tax professional to understand how those factors will affect taxes.