Farm Finance: Is it worthwhile opting into averaging?

Electing in or out of averaging is a significant business decision and shouldn’t be taken lightly, at the same time the benefits are hard to ignore.

The income tax deadline is fast approaching with Monday (October 31), the official deadline and a further extension to November 16 for returns filed online where payment is also made online.

For farmers, each annual income tax deadline should not pass without considering opting in or out of averaging. Income averaging presents farms with a great opportunity to moderate their tax liability, and can bring permanent tax savings where profits are rising or have been rising, and now plateauing.