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:

Accounting method changes:

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