As the calendar gets closer to the end of 2019, NDSU Extension Farm Management Specialist Ron Haugen offers a couple of year end tax planning tips. “Farm income is highly variable. It’s best to keep income as level as possible by adjusting expenses and income,” says Haugen. “There are things that can be done at the end of the year, like deferring payments for livestock and crops. There is a livestock deferral for those who were forced to sell livestock due to weather problems.” Crop insurance proceeds can be deferred, provided you meet the requirements. “You need to prove that you normally sell the crop the next year. That’s one thing producers can do,” explains Haugen. “There’s also income averaging. Farmers can also pre-pay expenses, but you don’t want to go more than half of what is normally paid and income can be deferred.”
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