From staff reports National Cattlemen’s Beef Association Executive Director of Government Affairs Kent Bacus outlined the results of the NCBA’s recent tax study.
With the 2017 Tax Cuts and Job Act expiring at the end of 2025, N CBA collected data to better understand how key tax provisions such as estate (death) tax relief and business deductions impact family-owned cattle operations.
“This tax survey report is a reflection of our grassroots network from across the country,” Bacus said Oct. 10. “What we found was very revealing. As we started to dig into this, we really learned about how some of these tools are used and how important they are to cattle producers.”
With 99% of tax sur vey respondents indicating they operated family-owned farms or ranches and 64% were third-generation cattle producers or more, the survey showed strong support for provisions such as the Section 1031 lik ekind exchange, Sec. 179 expensing, bonus depreciation as well as Sec. 199A Small Business Deduction. Additionally, data showed that a quarter of respondents spend more than $10,000 annually for tax preparation, filing, potential audits and other financial pressures to agricultural operations.
“We are going to use this d ata in our advocacy and education efforts with Congress over the next year, before the 2017 Tax Cuts and Jobs Act is set to ex pire,” Bacus stated.
He explained that the 199A Small Business Deduction is a deduction from taxable ordinary income. More than half of respondents considered it important to their business.