Oklahoma Farm Bureau members are invited to share their stories of how the expiration of the Tax Cuts and Jobs Act will impact their operations ahead of a tax roundtable hosted by Congressman Kevin Hern on Tuesday, Oct. 29, in Oklahoma City.
The Tax Cuts and Jobs Act of 2017 sunsets at the end of 2025, meaning the end to many beneficial provisions for farmers and ranchers. The result will be increased taxes for most farm households, with the impact varying based on the type of farm.
Primary changes expected with the expiration of the TCJA include:
- Income tax provisions (estimated increase of $4.5 billion)
- Expiration of lower-income tax rates
- Increased standard deduction
- Cap on the deduction for state and local taxes
- Elimination of the personal exemption
- Business tax provisions
- Elimination of the qualified business income deduction (estimated increase of $2.2 billion)
- Phasing out of accelerated depreciation options for farm equipment
- Federal estate and gift tax
- The Tax Cuts and Jobs Act of 2017 doubled how much property could be transferred without paying federal estate tax
- Expiration of the TCJA will lower this amount back to 2018 amounts, adjusted for inflation
- A look at the numbers shows those owing estate taxes will see an increase from 0.3% to 1%. Federal estate taxes are expected to double – from $572 million to $1.2 billion. Farm estates required to file an estate tax return will increase from 1.1% to 3.9%
OKFB anticipates the act’s expiration will have major effects on total tax liabilities of farm households, with moderate-sales households experiencing the largest percentage increase.
Farm Bureau members or agriculture small business owners with concerns about the effects of these eliminations are invited to submit their concerns or examples of potential impacts to OKFB’s Kinsey Westwood at kinsey.westwood@okfb.org before Oct. 28.
