HAGERSTOWN, MD (November 5, 2018) – Washington County Government recently received information from the IRS Legislative Affairs Division - Congressional Affairs Program regarding changes to the Tax Cuts and Jobs Act (commonly known as tax reform), which will directly affect farmers and ranchers.

Highlights of the changes are listed below:
 
  • Net operating losses can now be carried forward indefinitely.
  • Taxpayers other than corporations may be entitled to a deduction of up to 20 percent of their qualified business income.
  • More farm corporations and partnerships (average gross receipts of $25 million or less) can now use the cash basis of accounting for tax purposes.
 
Full details of the Tax Tips can be accessed below and are posted on  IRS.gov :

  • TT-2018-168: Newly revised publication helps taxpayers understand changes to backup withholding
  • TT-2018-169: Here’s how tax reform affects farmers and ranchers
  • TT-2018-170: Tax reform changes to depreciation deduction affect farmers’ bottom line

For questions or additional information, please contact Joan Proctor, district liaison, at 919-850-1164.