WASHINGTON — With Congress considering significant changes to the way farmers and agribusinesses are taxed, representatives are reaching out to industry advisors to provide insight on the potential impacts. Tax reform presents opportunities and risks for U.S. agriculture, and on Wednesday April 5th, K·Coe Isom’s Doug Claussen, CPA, principal will travel to Washington, D.C., to provide testimony to the House Committee on Agriculture.
“It is a genuine privilege to be invited before the House Committee on Agriculture and have the chance to represent the interest of producers and agribusinesses all across the nation,” Claussen said. “It’s a great opportunity to speak out in support of legislation that will support U.S. agriculture while voicing concerns about changes that could weaken it.”
In the U.S. House of Representatives, legislation will be based on the Tax Reform Blueprint released by Speaker Ryan in June of 2016. The Blueprint proposes to lower and flatten corporate and individual rates, create a new business tax rate for pass-through entities, and repeal the estate tax. It also allows for immediate expensing of qualified purchases and capital expenditures (excluding land), but would limit the ability to carry forward net operating losses, eliminate the ability to carry back net operating losses, and limit interest deductions.
Claussen will testify specifically on cash accounting, interest deduction, and loss carryback and carryforward provisions. Cash accounting is an important tool for farmers, helping them manage the significant production and price volatility of agriculture.
About K·Coe Isom
K·Coe Isom leads, nationally, as consultants and CPAs in the food and agriculture industry—services constituting more than two-thirds of the firm’s business. The firm is embedded throughout the US food-supply chain—from policy to plate—working with producers, input suppliers, processors, packagers, distributors, biofuel manufacturers, equipment dealerships, landowners, lenders, and many agencies and policy organizations that support the industry. The firm also has regional strengths in community banking, construction and real estate development, transportation, education, healthcare, manufacturing, and technology. K·Coe Isom serves domestic and international clientele from 19 coast-to-coast offices. Visit kcoe.com.
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