As you’re likely aware, there are major changes in the tax code this year, and we’ll be asking you for more and different information than we have in the past. For our farm clients, two areas will require additional documents from you for us to prepare your returns correctly.
For farmers who traded equipment in 2018: The federal tax code has eliminated the like-kind exchange provisions we’ve used over the last 30-plus years for equipment used in business. Prior to this year, we only needed to know the amount of cash you paid or borrowed to trade. What we need from you: For all trades of equipment made in 2018, please bring your invoice(s) showing the items traded and the items purchased. We will need that information to complete your tax returns.
For farmers who sold commodities to Cooperatives: We’ve always needed copies of all 1099-PATR forms you’ve received from cooperatives, and we still need those forms. This year, there are differences in calculation of certain deductions if you sold any or all of your grain as a member patron of any cooperatives. What we need from you: In addition to any 1099-PATR forms, please bring a printout from each cooperative where you’re a member, detailing the dates and amounts of your sales to the Cooperative in calendar year 2018. This printout will be required if you sold to cooperatives who operate on a fiscal year. Many in the area operate in this manner. If your 1099-PATR form shows any amount in Box 6 of the form, we will need the printout mentioned above. If you are NOT a member of any cooperative and were not issued a form 1099-PATR, we do not need any special printouts.
While the tax code may seem more complex in these areas, the new law is beneficial to the vast majority of our customers. If you bring the above items to your tax appointment, we can more efficiently prepare your tax returns. If you have any questions, we can discuss them with you at your tax appointment. We look forward to serving you.
There is much more information about the tax law changes here.