You know the saying, only two things are certain in life; death and taxes.  And there's even a tax on death.  Cornell Cooperative Extension has some tips on preparing for 2016 taxes and getting the breaks you deserve.

Obviously working with a tax professional is key to getting it right. But having the right information is just as important. Here are some important documents to have ready:
It is important to work with your tax professional this fall, consider the following to make the meeting productive.

1. Gather the most up-to date financial information on income and expense. Plus have an idea of what the remainder of income and expense will be for the year. This will provide for estimates of your tax position.

2. List of items purchased for resale (i.e. livestock) versus raised livestock for sale.

3. Provide a list of any capital purchase or sales with all details. This will allow for the distinction between capital gains treatment versus ordinary income.

4. Year-end statements on loan repayments. This is used to record the accurate interest expense on this loans.

5. Document sales or trades when no money changes hands.

6. Provide the number of gallons of fuel that is used off-road for farming purposed. You may be able to claim a tax credit or refund of excise taxes you paid for this fuel.

7. Discuss if you are considering an exit strategy or transfer of ownership. This requires planning well in advance of the transition

8. Discuss your classification of farm workers. Late or improperly filed documents and taxes carry hefty fines.

Here some resources for getting the best information ahead of time:

SOURCE: Cornell Cooperative Extension - B Collins

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