AUDIO: Tim Baker, T.L. Baker and Co.
Congress continues to hash out tax reform. Tim Baker heads T.L. Baker and Co. It’s an accounting firm in Grinnell. Baker has been paying close attention to the tax reform bill. He says it boils down to farm size as to how farmers will be affected.
“The C-Corporation tax rate of 20% kind of looks good but when you get down to it, it is really a small tax increase for small farmers who are in the C-Corporation setting,” Baker says.
One issue farm groups have been following is the elimination of the death tax or estate tax. Baker has concerns.
“I’m not buying the saving the family farm by getting rid of the estate tax. Yes, maybe one or two in Iowa are subject to it. But not many. The majority are well under the exemption limit,” Baker says.
He says more importantly is the stepped-up basis that comes through the estate on a deceased person’s asset. “That is what we want.”
Baker’s accounting firm hosted the third annual Central Iowa Ag Summit in Grinnell Thursday.