socastcmsRssStartBy Cole Lauterbach | Illinois News NetworksocastcmsRssEnd
The Internal Revenue Service is telling farm families to check up on their business to see if they’re getting the most out of the newly-overhauled tax code for small businesses.
Last winter’s sweeping tax overhaul included a number of changes that businesses can use next tax season.
IRS spokesman Michael Devine says most tax professionals will know about the changes, but farmers may be able to prepare for next year’s taxes to keep more money.
“There are ways that you can really affect your taxes by using the changes in the tax law that you may not know about,” he said.
Some of the new changes important for farmers include:
Net operating losses that can be carried forward indefinitely, rather than just 20 years.A business can only carry losses back two years, instead of five.Taxpayers other than corporations may be entitled to a deduction of up to 20 percent of their qualified business income from a qualified trade or business, including income from a pass-through entity, but not from a C corporation, plus 20 percent of qualified real estate investment trust dividends and qualified publicly traded partnership income.Farm corps and partnerships can now use cash basis accounting for tax purposes. This applies to farmers and ranchers with average annual gross receipts of $25 million or less in the prior three-year period.
Devine recommended to going to irs.gov or contacting a tax professional for information.