By Tiffany Dowell
Many people are wondering exactly how the sweeping “Tax Cuts and Jobs Act” will impact their personal tax returns and what the law might mean for agriculture.
I’m no tax law expert, but luckily, I know someone who is! I was fortunate to have Kristine Tidgren from the Iowa State Center for Ag Law and Taxation join me on a recent episode of the Ag Law in the Field Podcast to discuss the ins and outs of the new tax reform law. You can listen to the podcast episode on your favorite podcast app, or on your computer by
clicking here.
Additionally, Kristine and her crew at CALT put together a great blog post highlighting the details of the provisions most likely to impact those of us involved in agriculture. You can find that
here. Another great summary was done by Delta Farm Press and you can find that
here.
A quick update to something discussed by Kristine on the podcast and in the summary, last week Congress and USDA announced they would attempt to change a provision in the current law Section 199A that gives cooperatives a purchasing advantage for grain over independent elevators. Currently, farmers can deduct 20% of gross sales to cooperatives, but only 20% of net income if they sell to another purchaser. Several Congressmen and USDA says this was not the intent of the law.
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