The American Farm Bureau Federation (AFBF) recently urged lawmakers to continue the unrestricted use of cash accounting for farmers and ranchers who pay taxes as individuals, along with calling for comprehensive reform of the nation’s tax code.
The organization addressed tax provisions critical to agriculture in comments on the Senate Finance Committee’s Cost Recovery and Accounting Tax Reform discussion draft.
Farm Bureau supports the discussion draft’s proposal for an increase in Section 179 Small Business Expensing, but the organization is asking lawmakers to maintain the annual expensing of preproduction expenditures, including the ability to deduct fertilizers and other soil conditioners.
Depreciation for tangible property—equipment sheds, barns and greenhouses—is a concern. AFBF believes the committee’s proposal depreciates property over a time period that is longer than the structure’s useful life.