As April 15 approaches, it’s time to make sure you’re tax ready with accurate records and necessary documentation.
Consult this list to make sure your affairs are squared away:
- All farm-related receipts are accounted for (equipment, fertilizer, etc.)
- All business mileage on your personal car is recorded (dates, destinations, distances, purposes)
- Crop sale proceeds and ag program payments are listed separately
- Active versus passive farming activities are noted correctly
- Assets and expenses are reported accurately (know what’s depreciable)
Invest time now to organize your documents. Then, consider what changes you can make to your daily operations in 2021 that may make the tax submission process even simpler next year.
Learn more about these common tax pitfalls for farmers.