Finding the right farm tax expert could save an operation stress and money
An ag tax advisor says producers should prioritize finding the right tax professional because of rapidly changing tax laws.
Tina Barrett with Nebraska Farm Business Inc says that person needs to have farm tax experience to help farmers and ranchers optimize their financial situation. “We can take your operation in a completely wrong direction if you don’t know what you want to look like when we’re done or your end goal is,” Barrett says.
She says the right advisor will understand the special rules that apply to agriculture, like capital gains taxes. “Capital gains tax is always cheaper, and it always replaces the income tax. It’s not like you have to pay the income tax plus a capital gains tax. That again is one of those misconceptions that a lot of people have.”
Allan Vyhnalek with University of Nebraska-Lincoln Extension says a producer should always understand how their taxes are being prepared.
And, if they don’t, he says find a different tax professional. “They are all over the place. We can find other tax preparers. We can find other CPAs. Find someone you can work with,” he says. “I don’t want them to be your best buddy, but I want them to be someone you can relate to well enough that you can have a conversation in there, take the time to explain to you what is going on so you can make good decisions for your operation.”
Vyhnalek and Barret made their comments on webinar hosted by the University of Nebraska-Lincoln.