Has your farm or ranch incurred a net operating loss in recent tax years?

You may benefit from new carryback provisions in the recent CARES Act.

The CARES Act includes provisions that greatly enhance the options available for net operating losses (NOL). The Act provides new rules that will affect all taxpayers with an NOL, including ag producers. 

Prior to 2017’s Tax Cuts and Jobs Act (TCJA), taxpayers who incurred an overall tax loss that was generated by a business loss had the option of carrying that loss back several years to offset prior years’ tax or carrying it forward to offset future income. The TCJA eliminated the carryback provision, allowing only a two-year carryback for farmers. 

Currently, amidst the economic slowdown brought on by COVID-19, Congress has provided additional flexibility for taxpayers incurring an NOL. 

As with most any tax law, these new rules are complex and detailed. Read more.

Would you like some help to assess your tax situation? Please complete and submit the form below, and a member of our ag tax team will contact you.