The IRS has recently published its Tax Tip 2016-15 with emphasis on IRS issues applicable to farmers:
1. Crop insurance counts as income, generally, in the year the insurance payments are received.
2. Farm income averaging: You may be able to average some or all of the current year's farm income by spreading it out over the past three years. This may cut your taxes if your farm income is high in the current year and low in the prior three years.
See Publication 225, Farmer's Tax Guide.
We thank you for visiting our law blog. The comments and articles written in this blog are not meant to replace the advice of a tax attorney or CPA. We also provide updates on social media.