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Several ag tax benefits in limbo after 2025
An ag tax professor says several tax benefits are scheduled to expire at the end of 2025.
Roger McEowen with the Washburn University School of Law says the qualified business income deduction would be eliminated.
“This is a 20% deduction against a farmer’s business income. If I have farm income of $300,000, that’s a $60,000 deduction I can take against that if I have anything other than a c-corporation like a partnership, an s-corporation or a sole proprietorship, I get that deduction.”
He says the estate tax exemption is expected to be cut in half, bonus depreciation is also set to expire in 2027 and there would be a tax bracket rate increase.
McEowen says business decisions like input purchases and commodity sales are based on the tax code.
“It also effects our decisions about how to structure the farm business.”
He says the outcome of the November election will provide more clarity on how to plan for future taxes and Congress needs to pass another tax bill if these benefits are going to continue.
