If you run a cattle ranch, you are required to pay the appropriate taxes related to your ranch every year. Unfortunately, it can be a little bit confusing trying to figure out how much you have to pay on an annual basis. As always, it’s a good idea to work with a certified accountant to ensure your taxes are done properly. Nevertheless, here are a few tips that should help all the ranchers out there get started.
Keep track of your farm-related expenses.
At the end of every year, you will likely have an income to report for your cattle ranch. However, before you pay taxes on your income, you should factor your many expenses into the equation. Cattle ranchers often have a long list of expenses tied directly to their businesses. You should get into the habit of recording these expenses and keeping the receipts related to them.
Consider using farm income averaging.
The income you generate on your ranch can be a bit unpredictable at times. One year might be great, the next not so much. In some instances, you might be able to cut your taxes by doing farm income averaging, which allows you to average your income by spreading it out over the last few years. While this won’t benefit everyone, there are some ranchers who will be able to cut their taxes significantly by taking this approach.
Check to see if you qualify for tax credits or refunds.
There are all kinds of tax credits and refunds that some ranchers could potentially qualify for. You should see if you can claim a tax credit or get a refund for the excise taxes that you previously paid on fuel that was used on your ranch. Every little bit helps, and it’s good to get into the practice of checking to see which credits or refunds you might be able to get every year.
Do you want to make sure your ranch continues to grow in the coming years? Flying H Genetics can help you do it. Contact us to order cattle or hear about the services we can provide for ranchers.
