Woman in home office reviewing paperworkThe only thing better than that last pass at harvest is preparing for tax planning season, right? Well – maybe not quite. If tax preparation isn’t your favorite part of farming, AgWeb’s Paul Neiffer breaks down some year-end tax planning tips to make things a little easier. This year includes some changes farmers need to be aware of for optimal tax planning.

>> Farmers who will collect crop insurance indemnities and/or Emergency Relief Program (ERP) payments this year are allowed to defer their proceeds into the following year if they are a cash-method farmer who normally reports 50% or more of their crop sales in the year after harvest and received proceeds for damage in 2022. All three of these requirements must be met to qualify.

>> Farmers might not be able to receive their new farm equipment before the end of this year, so the deduction will need to be moved to 2023 if the invoice was paid this year.

With recent changes and the unique challenges faced in 2022, it’s more important than ever that farmers talk to their tax adviser.

Read more on 2022 tax planning here.