How tax reform affects farmers and ranchers

How tax reform affects farmers and ranchers
Many farmers and ranchers will benefit from changes brought about by the Tax Cuts and Jobs Act. Notable changes include:

Net Operating Losses:

• Can now be carried forward indefinitely;
• Are limited to 80 percent of income and
• Can be carried back for two years.

Pass-through entities:

• There’s a new 20-percent qualified business income deduction for income from a trade or business, including income from pass-through entities.
• The full deduction is available to married couples filing jointly with taxable incomes below $315,000 and other filers with taxable incomes below $157,500.

Accounting method changes:

• More small business taxpayers can use the cash basis of accounting. See IRS guidance for more information.