A freebie from the IRS
There was a new law passed last year that allows all taxpayers that use the standard deduction to take an extra deduction of up to $1,000 for real estate taxes paid on a personal residence. This deduction is in addition to the standard deduction. This deduction applies to farmers who do not itemize their deductions.
I know that many farmers do not itemize their deductions. This is normally due to their house being paid off and living in a state with low or no income taxes. If this applies to you this year, please make sure to talk to your tax advisor about this special extra deduction. It may not be a large deduction, but it is still worth up to $350 or more for farmers in the highest tax bracket.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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