The budget reconciliation bill includes a continuation of the estate tax exemption and the 20 percent 199A tax deduction. The bonus depreciation, which was being phased out, will revert to 100 percent again. NDSU Extension Farm Management Specialist Ron Haugen says there are also new tax provisions. “For farmers age 65 and over, there’s an extra $6,000 deduction for four years and then it phases out. There was an additional increase in crop insurance subsidies from three to five percent, and there’s a ten-year premium support for beginning farmers in there as well.” More details will be known after the Internal Revenue Service finalizes its guidance on these tax rules.
