Harvest season is fast approaching, and continued high commodity prices mean an optimistic outlook for 2022 farm profits according to the latest USDA forecast. Despite high input costs, extreme farm equipment cost inflation and other current economic conditions, farmers in Michigan and Wisconsin are optimistic about healthy profits this year…which means more motivation than usual to get an early start on tax planning.
In the past it may have been possible to make last-minute, late-December purchases of new or used equipment or inputs for next year’s crops if additional tax deductions were necessary. However, given the current supply-chain delays and disruptions, it is now more important than ever to plan well in advance to allow sufficient lead time in case of delivery delays, stock shortages or unexpected prices. This means, many farmers are scheduling multiple tax planning sessions as a result of rapidly-changing market conditions.
In addition to planning for profit-related tax savings, this is a great time for GreenStone’s specialists to reexamine your 2020 and 2021 quarterly gross receipts compared to 2019 to assess your eligibility to claim the Employee Retention Tax Credit (ERTC). In some cases our clients have received over $100k by applying this important tax credit.
Agricultural tax planning is best done using a preparer who understands your farm or farm-related business, and knows how to implement the many opportunities to minimize taxes the IRS allows. GreenStone’s dedicated team of tax and accounting experts has decades of experience in helping agricultural customers in Michigan and northeast Wisconsin do just that - implement tax saving strategies! After a careful review of your records, our experts will determine your projected tax liability. Then, after considering your short-term and long-term goals, we will help you map out a tax strategy that will leverage current tax laws and all available tax saving options to your advantage.
With GreenStone’s knowledge of your personal financial situation and our extensive agricultural tax prep experience, you can rest assured we will help you minimize your tax liability and maximize your profits. Our experts can also lend a hand year-round with routine accounting and bookkeeping, as well as employee payroll administration, to ensure your operation’s financial records are always up-to-date and accurate.
To start crafting your tax-saving strategy today, contact your local GreenStone specialist.