Tax law is generous to farmers. No other industry may defer revenue. No other industry may average back. Further, many alternatives exist regarding the depreciation of farm assets, and this helps control taxable income.

Taxpayers occasionally insist upon paying no tax. While strategies exist to wipe out farm income, this is not usually the wisest course. Rather, it is wisest to “optimize” farm income. Many factors come into consideration: stored grain, level of livestock inventory, desire to accrue social security benefits, tax brackets, retirement planning, and more.

When these topics are part of annual tax preparation, farmers can be assured that they are optimizing their situation, rather than wasting the farm.

With over 20 years of experience in public accounting, Amanda Bechen CPA owns Bechen & Company PC located in Wagner, SD, and can be contacted at 605-384-4200 or www.bechenco.com.