Tax Extensions Expire In The New Year

With tax break extensions for farm equipment and livestock set to run out at midnight tonight, farmers are left playing the waiting game in 2015. CPA and Manager for Sikich, Josh Sickler,  says farmers need to use timing to their advantage in this type of situation.

“Planning is going to be in timing of selling the crops and planning on buying your inputs and taking advantage of that on your end, prepaying expenses to get the deduction where we can, some of the typical annual activities that we do.”

Sickler says Sikich is optimistic that a permanent tax law is on the table for 2015.

“Congress was actually very close to making a permanent tax law for the bonus depreciation. It came down to the last couple of days and they took it off the table. Coming close to the year-end they went back for the one-year extension so we’re optimistic that permanent laws will go into place in 2015.”

With tax rates looking as though they won’t change to Sickler, he offers up advice for farmers in 2015.