Three Deferral Likely Applies Starting in 2026
The IRS has introduced a Section 1062 four‑installment, three‑year deferral for gains on qualifying farmland sales, but it only applies to transactions occurring after July 4, 2025 and to taxable years that begin after that date. Consequently, taxpayers filing a calendar year 2025 return are ineligible. Entities whose fiscal year starts on or after August 1, 2025, as well as most individual farmers, can begin using the deferral starting in 2026. The rule creates a clear cutoff for planning future farmland disposals.
The 2026 EBL Limit Is Much Lower Than the 2025 Limit
The Tax Cuts and Jobs Act of 2017 created Excess Business Loss (EBL) limits to curb large agricultural loss deductions, originally set at $250,000 for single filers and $500,000 for married couples. Those caps were indexed to inflation, reaching $313,000...
Wheat May Pay More Than Corn
U.S. farm income support payments under the ARC and PLC programs peaked in September 2025 but have been eroding, according to the latest April WASDE report. The new data indicate that wheat’s projected payments may now exceed those for corn,...
Payment Limits and Top-Ups Under SDRP
The USDA’s Staged Disaster Relief Program (SDRP) is closing its Stage 1 and 2 sign‑up period at the end of April 2026, after which it will calculate funds for a potential top‑up. Initially, the agency will cover about 35 percent of verified crop losses,...
Will 2026 Be Better for Corn Farmers Than 2024 and 2025
The Kansas City Federal Reserve released an updated forecast showing a higher profit per bushel for corn farmers in 2026 than in 2024 and 2025. The new estimate reflects a modest rebound in corn prices combined with relatively stable input...
IRS Provides Estimated Tax Penalty Relief for Farmers
The IRS issued Notice 2026‑24, automatically waiving the Section 6654 estimated‑tax penalty for qualifying farmers who file their 2025 returns by March 1 and pay the full liability by April 15, 2026. The relief addresses delays caused by the late finalization of Form 8995 and...
New Section 1062 — Spreading Out the Tax Bill on Farmland Sales
The One Big Beautiful Bill Act, enacted July 4 2025, added Section 1062 to the Internal Revenue Code. The provision lets sellers of qualifying farmland defer the entire capital‑gain tax into four equal, interest‑free installments when the buyer is a qualified farmer. This...
Washington State’s Estate Tax Whiplash
Governor Bob Ferguson signed Senate Bill 6347, overturning Washington’s 2025 estate‑tax hike that raised the top rate from 20 percent to 35 percent for estates over $9 million. The reversal restores the previous 20 percent rate, ending the state’s brief stint as having the...
Don't Delay Spousal Social Security Benefits
Farm couples often have a primary wage‑earning spouse while the other manages the household and farm chores without direct pay. When Social Security benefits begin, the stay‑at‑home spouse is eligible for a spousal benefit equal to half of the primary...
A Poll - Are You Waiting for USDA Guidance on LLCs and S-Corporations
The One Big Beautiful Bill Act, enacted in July 2025, reshapes how LLCs, S‑corporations, and similar entities are treated for USDA payment limits. Previously restricted to a single payment cap, these entities will now be evaluated like general partnerships, with...