The Casual Cattle Conversations Podcast: Tax Conscious Ways for Ranchers to Spend Profits

Tax Conscious Ways for Ranchers to Spend Profits

Attaining ranch profitability is a hot topic, but what about how to use and invest those profits?

“For most cow-calf producers, two out of 10 years are good years, four to five years are okay and the rest are pretty tough financially,” says Aaron Berger, Beef Systems Extension Educator for the University of Nebraska-Lincoln. “We are in a season now where many cow-calf producers are going to experience profitability.”

Those dollars can be invested in a variety of areas that are beneficial in the long run — but they can also easily be misused in an effort to avoid paying taxes.

“One temptation with profit is to avoid taxes, which results in purchasing equipment or cattle,” Berger says. “I encourage ranchers to take a step back and look at the bigger picture to see if that’s truly the best option.”

Knowing where to best spend ranch profits starts by looking at the books..... 



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