 TAX STRATEGIES FOR U.S. FARMERS: TAX REDUCTION AND AVERTING RISKJeff Decker and Richard Ray Accounting & Taxation, 2017, vol. 9, issue 1, 49-61 Abstract: This paper presents tax planning strategies specific to farmers. We discuss several opportunities in which a farming operation can either reduce its current tax liability or preserve tax benefits for the future. Under current U.S. tax laws, special provisions exist that are designed to offer the U.S. farmer favorable tax treatment. We specifically highlight these provisions in an effort to remind others of their existence. In addition, there are other provisions within U.S. tax laws that are not so favorable to the U.S. farmer. We provide some suggestions on how the farmer can bypass these rules simply by altering facts and circumstances, which is a lawful behavior. For example, the first strategy we discuss requires the U.S. farmer to plant a secondary crop in order to accelerate cost recovery on an irrigation system. By planting a secondary crop, the farmer has changed the facts and circumstances. Finally, some of the strategies we discuss contain potential risks. We specifically emphasize these risks areas and offer suggestions on how to avoid them Keywords: Tax Planning; Farming; Agriculture; U.S. Tax Laws (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ibf:acttax:v:9:y:2017:i:1:p:49-61 Access Statistics for this article Accounting & Taxation is currently edited by Terrance Jalbert More articles in Accounting & Taxation from The Institute for Business and Finance Research |
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