Agriculture is subject to unique insurance provisions including workers compensation, and federal unemployment tax. Agricultural business activities enjoy shortened asset lives for depreciation purposes. Farming activity rules require understanding in order to take current business deductions and comply with farm reporting rules. It is typical that a farming operation would have several different types of tax related activities that would have to be separately identified for tax reporting. Tax planning also involves minimizing the estimated tax payments required.
Farmers can apply for favorable exemptions and pay at year end without incurring a penalty.
Our firm has experience relating to agricultural tax planning. We know the rules. Agricultural Business Plans Agricultural Business Plans require a high level of working knowledge as revenues are sensitive to high levels of volatility. An accurate plan disclosures value to the income stream and capitalization potential of business assets. We can advise on and prepare agricultural business plans for family business, venture capital groups, or banks.