Tax Deductions Could Save Ranchers Money
A few little known tax deductions could save ranchers a few dollars on their 2006 tax returns this year. A domestic manufacturing deduction, created under the American Jobs Creation Act of 2004, is available for any persons who produce things, including farmers and ranchers. This year’s deduction allows for a three percent deduction on 2006 tax returns. Keep a close eye on the details of this deduction and consult a certified public accountant for more details. Below is a brief explanation of the potential deductions:
• 3 percent of the qualified production activities income (QPAI)
• 3 percent of taxable income of any entity or adjusted gross income for individual taxpayers
• 50 percent of W-2 wages paid during the year by the taxpayer.
Read more about this deduction on the Texas Farm Bureau Web site.
Qualifying your cow-calf operation with agriculture status is important as well if a producer keeps land and livestock as a part-time or recreational venture. Read more about this on Cattletoday.com.
Survey Shows Pastureland Lease Rates Climbing
A recent USDA survey on pastureland lease rates shows higher costs, an average of four and a half percent more this year, in leasing a private pasture for grazing purposes. Read more about this on Beef-Mag.com.
USDA Releases Final Livestock and Meat Marketing Report
A report from the USDA’s Grain Inspection, Packers and Stockyards Administration shows that alternative marketing arrangements increases the economic efficiency for cattle, hog and lamb markets. Read more about this report on the TSCRA Web site.
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