DTN
What a wild ride. No, not COVID or politics. I’m talking about the weather — from drought and fires to floods. Because of the weather’s significant impact on farmers this year, I want to review a few planning opportunities to help mitigate the potential tax consequences.
Many farmers will defer the 2021 crop into 2022 to delay recognition of income. But, what are the rules? A deferred payment contract is essentially an installment sale. An installment sale requires that at least one payment is received after the close of the tax year.