Many farmers and ranchers will benefit from tax law changes brought about by last year’s Tax Cuts and Jobs Act. Here are some of those changes along with details about how they will affect farmers and their bottom line:

Net Operating Losses:

• These can now be carried forward indefinitely. Under prior law, they could only be carried forward 20 years.
• NOL deductions are limited to 80 percent of taxable income.
• They can be carried back for two years for farm and ranch businesses. Under prior law, NOLs could be carried back five years.

Qualified Business Income Deduction:

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