Filing state, federal and local taxes is extremely complex in agriculture. Farmers and farm land owners rely heavily on their CPA to ensure that every tax form, deduction and asset is treated properly and within tax guidelines.
The MDPT process is contained largely within I.R.C. § 453 and I.R.C. § 2032A which your CPA knows well. But it is not just awareness of the tax code, it is about its application to your operation. MDPT is more than just this year’s tax return, it is about how your taxes and invested tax deferred dollars are managed over a 15, 20, or 30-year timeframe.
This is your opportunity to team up with your CPA and financial advisor to construct a long-term plan with MDPT as a cornerstone. MDPT is based upon the monetized installment sale process. When you receive the loan amount, up to 95% of your sale, your CPA work to position you for the future. The timeframe for deferral is up to you. How you invest the deferred taxes is up to you.
If you don’t have a CPA or haven’t worked with one in a while, ask us for a list of CPA firms who have studied MDPT and would be happy to be a part of your team.
The Power to Preserve Value is in your hands!