Tax planning is something that should be done year-round, but NDSU Extension Farm Management Specialist Ron Haugen says many decisions are being made now. “The Emergency Relief (Program) payments that we got in 2022 were actually from disasters from previous years so those have to be reported this year and they can’t be deferred.” Accelerated depreciation machinery purchases are also tools to adjust income. “This is the last year of the 100 percent bonus depreciation; that’s scheduled to phase out as long as Congress doesn’t change anything. In 2023, it’s going to go down to 80 percent and keep phasing out.”
