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Farmers encouraged to begin year-end tax prep now

Farmers are encouraged to get their tax and accounting information in order as the end of the year approaches.

Dan Coulthard with Compeer Financial says there should be a sense of urgency given increased costs and prices in 2022.

“Yes your prices that you are receiving for your goods have been up, as well as your input costs, but people have been able to pay off some debt. In that regard, if you’re paying off debt you’re making money.”

He tells Brownfield another potential income tax issue farmers are running into involves equipment upgrades.

“This year I might be wanting to do that, but if you can’t get that serial number or whatever, or pay for it, we cannot legally depreciate that off on your taxes.”

Coulthard says a potential work-around is buying out a lease to help alleviate some of the tax burden.