It’s not too late – if you haven’t yet scheduled a strategic tax planning meeting with a tax advisor, there are some very good reasons why you should.
Strategies to reduce current year income: use of accelerated depreciation methods (bonus depreciation, section 179), retirement contributions, crop insurance deferral, treating CCC loans as loans, prepay operating expense within guidelines
Strategies to increase current year income: elect out of installment sale reporting, accelerate grain income from deferred payment contracts, elect out of like kind exchange treatment on real property, treat CCC loan as income, capitalize fertilizer expense, convert traditional IRA to a Roth IRA
You will want to build flexibility into your tax plan to allow for the best position (in case there is late issuance of IRS guidelines related to tax reform) to anticipate any potential changes as to what qualifies as QBI.
If you cannot get to $315,000, investigate other options available to qualify for this deduction.
Year-end tax planning has become more complicated for the 2018 tax year largely due to the new tax provisions under the Tax Cuts and Jobs Act passed last December. The tax experts at K·Coe Isom can help with strategic planning to capture the most short- and long-term opportunities and tax benefits for your agribusiness. Contact a K·Coe Isom tax expert to schedule a tax assessment.