National Ag News

New risks and uncertainty have been created by the Section 199A deduction for agriculture in the new federal tax bill. Tommy Irvine, a CPA with K-Coe Isom, says language that was added late in the formation of the tax reform bill favors cooperatives but puts private handlers at a great disadvantage, “A grower to selling to a cooperative gets a 20% deduction on their gross income versus, same exact facts, except selling to a private handler gets a 20% deduction on their net income.”

One way around that, Irvine says, is for growers to start selling to cooperatives or for private handlers to set up a cooperative, “Each state does have its own cooperative rules, so you have to make sure you’re meeting those for the state.

Continue reading New 199A deduction in tax bill creates imbalance at Brownfield Ag News.