Farmers, Can Income Averaging Reduce Your Tax Bill?
For a farmer, uneven earning from year to year is a fact of life. But it can also wreak havoc on your taxes. A bumper crop, the sale of a large farm asset, or a new business venture can cause a quick jump not only in your income but also in your income tax. How can you mitigate the tax bill that may follow a good year? The answer is with income averaging.