New video offers tax strategies for cattlemen

“This year, more than ever, you need to meet with your tax planner to determine what steps you need to minimize your taxes,” Kopsa says

If you wait until December to do that, you’ve waited too long. Tax planning should be integral to your overall financial plan and should begin January 1, 2015. Our approach is to “plan backwards” – i.e. plan to zero taxable income at December 31, 2015. One caveat, no business decision should be made solely and entirely based on taxes. If it doesn’t make good economic sense, it shouldn’t be done regardless of the tax consequences. — jtl

by Amanda Radke in BEEF Daily

Once the clock strikes midnight on Dec. 31, it will be too late to implement any strategies to reduce your tax bill to Uncle Sam. Check out these tax planning tips to determine any final steps you can make for 2014.

“You must pay taxes. But there’s no law that says you gotta leave a tip,” said Larry Kopsa, CPA, in a recent webinar hosted by the National Cattlemen’s Beef Association (NCBA). Kopsa, a Nebraska-based accountant, was referencing a quote used in an advertisement by Morgan Stanley, and it’s pretty accurate as we wind down 2014.

Nobody likes thinking about taxes during the holiday season, but once the calendar switches to 2015, there are limited options that taxpayers have left to strategically lower their tax bill.

“This year, more than ever, you need to meet with your tax planner to determine what steps you need to minimize your taxes,” Kopsa says.

With the high price of calves this year, many ranchers are looking at updating equipment, holding replacement heifers back, or purchasing bred heifers. Before making these investments, Kopsa offers some considerations to get the most out of tax deductions, as well as the common pitfalls to avoid.

“There isn’t one big way to save on taxes, but there are a lot of little things,” Kopsa says. “The little things add up.”

Additionally, Colin Woodall, NCBA senior vice president of government affairs, and Kent Bacus, NCBA associate director of legislative affairs, discussed what’s happening in Congress in relation to tax rules. For example, during the lame duck session of Congress, NCBA is focusing on tax reform in 2015, such as reinstating Section 179 expensing and 50% bonus depreciations to 2013 levels, and extending the conservation easement tax credit and key charitable deductions.

Are you doing any tax planning before the end of the year? If so, what strategies are you implementing this year to reduce your bill to Uncle Sam? Are you concerned about the decisions Congress will make on tax reform? Share your thoughts on the comments section below.

The opinions of Amanda Radke are not necessarily those of or the Penton Farm Progress Group.


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About Land & Livestock Interntional, Inc.

Land and Livestock International, Inc. is a leading agribusiness management firm providing a complete line of services to the range livestock industry. We believe that private property is the foundation of America. Private property and free markets go hand in hand—without property there is no freedom. We also believe that free markets, not government intervention, hold the key to natural resource conservation and environmental preservation. No government bureaucrat can (or will) understand and treat the land with as much respect as its owner. The bureaucrat simply does not have the same motives as does the owner of a capital interest in the property. Our specialty is the working livestock ranch simply because there are so many very good reasons for owning such a property. We provide educational, management and consulting services with a focus on ecologically and financially sustainable land management that will enhance natural processes (water and mineral cycles, energy flow and community dynamics) while enhancing profits and steadily building wealth.
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