TAXES

KEY ISSUES – RESOLUTION

Taxes

  1. MGGA supports extending the $500,000 residential capital gains exemption to include agricultural farmsteads.
  2. MGGA supports retention of the increased exemption from estate taxes and retention of the stepped up cost basis. (Revised 2018)
  3. MGGA supports maintaining the Section 179 deduction at $1,000,000 with a $2,000,000 cap. (Revised 2018)
  4. MGGA supports maintaining a depreciation (cost recovery system) which preserves a single purpose agricultural building classification and also qualifies these structures for Section 179. (Revised 2016)
  5. MGGA supports legislation that retains the 100% bonus depreciation on all farm business assets. (Revised 2018)
  6. MGGA supports the reinstatement of a graduated corporate tax rate in taxable income for C corps. (Revised 2021)
  7. MGGA supports the permanent reinstatement of a 100% deduction for farm meals for C corps. (Revised 2019)
  8. MGGA supports a permanent provision to allow for current year income to be 100% offset by a net operating loss carried forward. (Revised 2020)
  9. MGGA supports the reinstatement of the domestic production activities deduction (199a) for C-corps with less than $1 million gross revenue. (New 2018)
  10. MGGA opposes imposition of accrual accounting on agricultural enterprises. (New 2013)
  11. MGGA supports the deductibility of an employer’s health insurance premium and medical expenses paid on behalf of employees as a business expense on its tax return. (Revised 2016)
  12. MGGA is opposed to the taxation of health care benefits for employees.
  13. MGGA is opposed to financial transaction taxes. (New 2019)
  14. MGGA supports the elimination of the Montana business equipment tax on agricultural equipment. (2008)
  15. MGGA will participate in the discussion of state taxation options for the purpose of a more equitable and simplified tax system. (Revised 2017)
  16. MGGA supports representation at the state legislature in the event of tax reform strategy proposals to see that agriculture interests are treated fairly.
  17. MGGA Grain News and website will report information on current agricultural tax issues.
  18. MGGA supports retention of the unlimited Section 1031 like kind exchange rules for business or investment real estate. (New 2020)
  19. MGGA opposes a capital gain tax on the transfer of appreciated assets at death or by gift. (New 2021)
  20. MGGA opposes any increases to the individual income and capital gain tax rates. (New 2021)
  21. MGGA opposes the limitation of valuation discounts when valuing interests in closely held businesses. (New 2021)
  22. MGGA opposes any new limitations in the utilization in grantor trusts. (New 2021)
  23. MGGA supports an increase in the section 2032(a) special use valuation discount for estate tax purposes. (New 2021)
  24. MGGA opposes retroactive application of new tax law changes. (New 2021)
  25. MGGA supports 45Q tax credits for farmers to encourage ongoing management of conservation practices and options for producers to begin or expand conservation/carbon sequestration and greenhouse gases reduction efforts. (New 2021)
  26. MGGA supports the permanent retention of the section 199A qualified business income deduction. (New 2022)
  27. MGGA supports a provision for the full current deduction of qualified research and development expenses, retroactive to January 1, 2022. (New 2022)