Overview President Trump’s October 5, 2026, Executive Order on diesel fuel tax relief has created new opportunities for farmers facing high fuel costs. The order directs federal agencies to provide temporary relief involving red-dyed diesel, including penalty relief for certain highway uses through December 31, 2026. But farmers should be […]Read more »
Income Tax
482 posts
Overview Farmers and ranchers routinely move substantial amounts of money among family members, operating entities, investors, landlords, and business partners. Those transfers may be intended as loans, capital contributions, investments, deposits, or joint-venture funding. But if the parties fail to document the transaction when the money changes hands, the IRS […]Read more »
Overview The H-2A temporary agricultural worker program has become indispensable for many farms and ranches facing chronic labor shortages. Yet, while most producers understand the immigration aspects of the program, many remain unaware that H-2A workers are subject to an entirely different federal payroll tax regime than domestic agricultural employees. […]Read more »
Overview Facing compressed operating margins, elevated interest rates, and fluctuating trade dynamics, producers are increasingly forced to reevaluate their foundational business structures. Operational decisions that once seemed routine – such as signing a bank loan renewal or selling an underutilized combine – now carry sophisticated, sometimes hidden, tax and regulatory […]Read more »
“Beyond the Seed: Protecting Your Innovations and Bottom Line in the Era of High-Tech Farming.” Overview The agricultural landscape is undergoing a digital and biological revolution. Whether it’s a new drought-resistant hybrid, a proprietary algorithm for precision planting, or the “Big Data” harvested by a fleet of autonomous combines, Intellectual […]Read more »
Why the Tax Court Just Plowed Under Basis Shifting Overview For decades, the tax Code has been a tool for savvy farmers and ranchers to preserve capital, transition operations to the next generation, and manage the razor-thin margins of American agriculture. We use partnerships—specifically those governed by Subchapter K—because they […]Read more »
The One Big Beautiful Bill Act (OBBBA) The biggest development of 2025 in agricultural law and taxation was the signing into law on July 4 of the OBBBA. The OBBBA represents a significant mix of tax relief and modernized safety nets for the ag sector. By aligning tax code benefits […]Read more »
Deducting Residual Soil Fertility Soil nutrients. A tax strategy that has increased exponentially in recent years and for which there are no cases, no statue and no IRS guidance in the last 30 years is claiming a deduction for “residual” or “excess” fertilizer supply. With rising farmland values and fertilizer costs, many […]Read more »
Why Farmers Should Be Wary of the “Private Bank” Pitch Overview If you spend any time on farm forums or social media, you’ve probably seen the pitch: “Become your own bank.” Promoters of the Infinite Banking Concept (IBC) tell a compelling story. They suggest that instead of going to the […]Read more »
Overview The One Big Beautiful Bill Act made 100 percent bonus depreciation permanent for assets placed in service after January 19, 2025. So, this year, you will be able to deduct 40 percent of the cost of buildings and equipment placed in service between January 1 and January 19. After […]Read more »