9 tax law changes farmers need to know about

Contributing sentiments towards policy:

70% : Filling your zero, 10% and 12% federal tax brackets each year is a good long-term strategy. 7.
69% : Long-term tax strategies, income averaging and estate tax planning are crucial for navigating 2025's tax changes effectively.
62% : The 2025 tax year brought several important changes to the tax landscape for farmers, both federally and at the state level.
62% : Expanding their equipment deductions helps increase their net present value and accelerates the tax benefits value from those purchases.
60% : It's important to build a tax plan that incorporates both income and personal property tax changes.
58% : But changes to tax rules are almost equally inevitable.
58% : Ask how to incorporate new expensing options into your long-term tax strategy.
58% : Your tax preparer should review those transactions to determine whether the net investment income tax applies.
57% : Farmers should take advantage of the lower-income tax brackets each year.
56% : One thing that's remained consistent from last year is tax rates for income brackets.
56% : Farmers should prioritize multiyear tax plans.
55% : Illinois' flat tax rate is unchanged for 2025 at 4.95%.
55% : Ask your tax adviser how to leverage your use of zero bracket amounts, for example.
54% : Editor's note: This is the first in a series on farm tax law changes, authored by Farm Business Farm Management experts. by Bob Rhea and Randy Wilson Taxes are a certainty.
54% : Starting in 2026, there will be a higher federal estate tax exemption level at $15 million per individual, as well as higher annual gifting limits of $19,000 per person.
54% : Knowing this heading into 2026 provides a little more certainty for farmers who want to build an estate tax plan.
53% : Determine if or how your tax rate has changed.
53% : They can also look at the nonfarm side of your tax return and convert a traditional individual retirement account to a Roth IRA, or accelerate income from other entities on your operation.
52% : Machinery sales are eligible for the qualified business income deduction -- an often-overlooked tax benefit on returns.
50% : Ask your advisers how your transition planning might shift based on estate tax changes.
47% : This means that if you had higher income in 2025, you can push that income back to the previous three-year tax brackets and reduce your current-year income tax.
46% : But Indiana, for example, reduced its individual flat income tax rate from 3% to 2.95% for 2025. 4.
46% : But the July tax law instead raised it to $15 million, the highest it's ever been.
44% : Recognizing this will help you avoid paying more tax. 8.
43% : Filing your taxes isn't just about one calendar year.
43% : But if your operation brought in less income in 2025, or even recorded losses, certain tax strategies can help.
35% : When you meet with your tax adviser this season, make sure to ask about these nine strategies and rules to see how they could potentially lower your tax bill. 1.

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