All revenue and sources of income. 

All expenses with descriptions. 

All capital asset sales and purchases (with details). 

Bank loan payments detailing principal and interest portions. 

An estimate of additional revenue expected, along with what might be deferred if necessary. 

An estimate of upcoming expenses, and an idea of what expenses might be shifted (deferred or prepaid) across tax years. 

Any health insurance premiums paid out of pocket, may be eligible for a self-employer credit/deduction. 

All draws that have been taken. 

Putting money into a retirement account with tax-preferred treatment such as a Traditional IRA or some 401k accounts. 

Putting money into a Health Savings Account. 

Making a commodity donation to a house of worship or other charitable organization may provide a greater tax benefit than a cash donation. 

Utilizing prepays is a common way to lower the farm’s taxable income but check with your tax preparer about specific restrictions and requirements.  

Paying the accrued interest of any debt at the end of the year. 

Utilizing any remaining Net Operating Loss (NOL) that can be carried over. It is important to remember that the NOL can only offset up to 80% of the taxable income for the farm. 

Use depreciation strategies with caution. Section 179 and Bonus Depreciation allow a farm to rapidly depreciate an asset in a shorter period, up to a single year.  However, there are several limitations to these methods and subsequent tax consequences when the asset is sold. 

Income Averaging is a method only available for farms and commercial fishing. It may help you avoid higher income tax brackets in one year if you have previous years with “unused” lower income tax brackets.