As 2018 comes to a close, farmers and ranchers are gathering financials for tax planning purposes. NDSU Extension farm economist Ron Haugen says it’s best to start with year-to-date income and expenses, and estimate them for the remainder of the year. There are also several items to note for tax planning regarding new tax law changes. “The tax rates have decreased, and there are some different rules for depreciation. Now, ag producers are allowed to use the 200 percent declining balance depreciation.” In addition, for most new ag machinery and equipment (except grain bins), the recovery period has been reduced from seven to five years. Haugen adds there are also significant changes to like-kind exchanges. “They are now not allowed for personal property, meaning machinery and equipment, but are allowed for real property such as land.” Additional tax information can be found in the IRS Publication 225, the Farmers Tax Guide, and listen to more of the conversation.