American Farm Bureau’s tax policy specialist says she’s enthusiastic about the proposed tax reforms unveiled by the Trump administration Wednesday, but there are a lot of unanswered questions for agriculture.
Pat Wolff says, "It’s important to clarify that that 15% lower business tax rate will apply to all farmers whether they’re corporations, partnerships or if they pay businesses as sole proprietors.”
Nothing was said about business deductions that are very important to farmers.
“We can’t tell what’s going to happen with things like immediate expensing, cash accounting, like-kind exchanges and whether or not the deduction for business interest will continue.”
Wolf says farmers could end up with a tax increase, even with a lower 15% tax rate.
Farm Bureau’s long-sought elimination of the estate tax is part of the proposal — which Wolff says is “really good news,” but she doesn’t know about the stepped-up basis.
“It determines if and when capital gains taxes will be owed on inherited properties.” Wolff says Farm Bureau wants the stepped-up basis to stay on the books.
Source: brownfieldagnews.com