2021 Farm Loan Tax Advice

Did you know that the best time to apply for a farm loan is before you file your tax return?

The primary reason is most CPA’s and tax planners will be seeking strategic opportunities for their clients such as carrying over income into the forthcoming year, holding back expenses in the current year, and numerous other strategies to reduce your tax liability. Your banker, on the other hand, is looking for the exact opposite, as cash flow is a key component in qualifying for a new farm loan. By reporting higher income, you position yourself to access larger amounts of credit with lower interest rates. So, in turn some tax strategies used to reduce your income can decrease your chances to secure financing for your farm operation.

The team at Farm Plus Financial understands this balance and can often aid in tax planning measures to benefit your financial standing. Farm Plus Financial is happy to provide you a no cost analysis of income/expense reports and financial statements to help you better position your farm operation for stability and future growth.

Let us know if we can help you today!

Don’t forget to get your taxes in by Monday, May 17th!