Our year-end tax planning tips continue with NDSU Extension Farm Management Specialist Ron Haugen. Haugen tells farmers to consider income averaging. “It’s not the same as a net operating loss. If you have a higher income one year, you can fill up your previous tax brackets and reduce your income liability for the current year.” Crop insurance proceeds can be deferred with qualifications. “You need to have some historical accounting for what you normally do before you defer that. As another option, say you sell some grain to a local elevator, you can tell them you want the check the next tax year and defer back to the next year.”
