The Tax Overhaul and Your Farm

Farms can fully deduct all farm assets purchased between Sept. 28, 2017, and Dec. 31, 2022.Section 179 is bumped to $1 million beginning in 2018 with a phase-out starting at $2.5 million.There’s almost an automatic 20% deduction for net farm income.The tax plan doubles the lifetime estate tax exemption to $11.2 million starting in 2018, and most farmers will be able to deduct all of their interest expense.Net operating losses can only be carried back two years and can only offset 80% of income going forward.Meals are only 50% deductible for farmers who provide them to employees on-site, and that will drop to zero beginning in 2026.