Senior Farm and Ranch Broadcaster, Ron Hays, is talking with National Cattlemen’s Association executive director of government affairs, Kent Bacus, about the tax study that NCBA recently released.
With the 2017 Tax Cuts and Jobs Act set to expire at the end of 2025, NCBA collected survey data to better understand how key tax provisions, such as Death Tax relief and business deductions, impact family-owned cattle operations.
“This tax survey report is a reflection of our grassroots network from across the country,” Bacus said. “What we found was very revealing. As we started to dig into this, we really learned about how some of these tools are used and how important they are to cattle producers.
The respondents to the tax survey indicated that 99% operated family-owned farms or ranches and 64% were third-generation cattle producers or greater. Additionally, the survey showed strong support for provisions such as the 1031 Like-Kind Exchange, Section 179 Expensing, Bonus Depreciation, and Section 199A Small Business Deduction. The data also showed that a quarter of respondents spend more than $10,000 annually for tax preparation, filing, and potential audits, all expenses that only add further pressure to agricultural operations.
“We are going to use this data in our advocacy and education efforts with Congress over the next year, before the 2017 Tax Cuts and Jobs Act is set to expire,” Bacus stated.
He explained that the 199A Small Business Deduction, which more than half of the respondents considered to be very important to their business, is a deduction from taxable ordinary income. It is useful for farms and ranches that are not corporations and have income from sales through a cooperative or other similar businesses.
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