Farmer concern about tax policies under President Biden
The president of a farm accounting firm is seeing uneasiness among farmers when it comes to tax policies under the Biden Administration.
Chad Hansen is with Mason City, Iowa-based Corporate Farmer.
“I think it’s common that there’s a fear that we’re going to see significant increases in tax rates, and maybe get rid of some of the policies that we’ve gotten kind of used to in the last four years.”
He tells Brownfield increases to Section 179 and bonus deprecation should be expected.
“(Both) are really great for farmers as equipment costs have skyrocketed, and honestly have almost got to what some of us think are kind of crazy levels. What will happen there with that depreciation? Because that’s really been kind of the fallback for a lot of guys that get themselves into a tax pickle.”
Another major concern is the estate tax, sometimes referred to as the death tax. Hansen has heard the Biden Administration is looking at capital gains on assets at time of death, which he says would be a huge blow to the majority of farmers whose wealth is wrapped up in assets.