Most government payments to farmers and small businesses require inclusion as income on your annual federal or state tax return. The continued COVID-19 pandemic, summer 2021 natural disasters including hail and drought, and other governmental funding initiatives will result in some farms and small businesses having significant governmental income payments this year. Since most farmers are cash-basis tax filers, farmers may take advantage of several tax planning strategies to help maximize their after-tax income.

Successful fall tax planning requires that farmers maintain up-to-date farm accounting records to determine what strategies to implement.  For more from this University of Minnesota source, please click here.

For Iowa based strategies, plan to attend the 2021 Iowa Farm Income Tax webinar, November 4 at 1:00 pm.   For more information and to pre-register and receive reminder e-mails, please click here.