How tax reform affects farmers and ranchers


Notice: Historical Content

This is an archival or historical document and may not reflect current law, policies or procedures.

October 31, 2018

Many farmers and ranchers will benefit from changes brought about by the Tax Cuts and Jobs Act. Notable changes include:

Net Operating Losses:

  • Can now be carried forward indefinitely; 
  • Are limited to 80 percent of income and
  • Can be carried back for two years. 

Pass-through entities:

Accounting method changes:

  • More small business taxpayers can use the cash basis of accounting. See IRS guidance for more information.