Tax laws have changed for small business partnerships on the farm and ranch. Effective in 2018, if you're one of thousands who enjoy simplifying their tax filing each year by claiming their farm income from a small business partnership exemption on your usual FORM 1040 form instead of having to complete IRS FORM 1065, then you have a real surprise coming. In 2018, you're going to be losing that exception and your tax return is going to become much more involved - and difficult.
Chances are you haven't heard about that law, which was part of the Bipartisan Budget Act of 2015, passed into law last November. And that's because the issue was hidden in the budget bill and not the tax bill. Dr. Neil Harl, Emeritus Professor of Economics at Iowa State, explains how the change came about and what farmers and ranchers can do to change the law back to allow the exception.
For more information, see the podcast.