AUDIO: Kristine Tidgren, assistant director for the Center for Ag Law and Taxation
Congress is expected to vote on a historic tax bill any day now.
Sources on the hill say the tax bill vote could be Tuesday or Wednesday.
“There are some significant changes in this bill that should be good for farmers,” said Kristine Tidgren, assistant director at the Center for Ag Law and Taxation.
Particularly, most farm operations are pass-through businesses which means they are operated as sole proprietors, S- Corporations, or partnerships.
“These taxpayers don’t take advantage of the corporate tax decrease. What the bill does, is it includes a new deduction for qualified business income stemming from pass-through businesses,” Tidgren says.
There something to note. The provision expires in 2025.
“That’s one of the big things people need to be aware of in this act. There are a lot of positive things in terms of lowering tax rates across the board but those rates are just temporary,” Tidgren says.
Most provisions will kick-in for the 2018 fiscal year. Many farm groups have been also pushing the elimination of the death tax. Tidgren says there’s a caveat there too.
“The final language that will be voted on would not ultimately eliminate the death tax, it would be retained. However, the basic exclusion amount a person can die with not have those assets subject to tax would be doubled,” Tidgren says.
Republicans say they have enough votes to pass the legislation.