Ag Industry Trends & Outlooks

In this month’s Knowledge Exchange Partner, Farm Credit East Tax Consultant, Edward Maxwell, explains the importance of understanding your operation’s tax liability and how to tax plan for cash basis reporting.

In the last Tax Talks, “Tax Strategies for 2022: Understanding Your Tax Liability,” we began to understand the importance of record keeping and tax planning early in the year. In today’s blog, we’ll continue to build upon that foundation as we discuss tax planning for cash basis reporting.

Have you started tax planning for 2022? First and foremost, you need to have a good record keeping system in place to accurately detail your farm income and expenses. If you wait until the dark, cold months of January and February to do your books for the year when there isn’t much else going on, you’re not going to have the opportunity to accurately tax plan. 

Originally published in Hoard's Dairyman, this article by Roger Murray, Farm Credit East Chief Marketplace Officer,discusses how to plan ahead in this inflationary environment to ensure more of your gross revenues remains in your pocket.