Filing taxes is a necessary evil, and navigating proper business strategies for the farm during tax season can be a jungle. Marissa Nehlsen joins us. She’s a business strategist, coach, and speaker, and a farm kid from North Dakota. She suggests getting all your advisors together.
“That’s tax, legal, risk, wealth management, that’s your banking relationships,” she says. “When’s the last time your accountant, attorney, financial advisor, insurance guy, banker… all got in the same room and talked about your plan?”
Nehlsen says your team can make sure that you’re not wasting a cent. After all, you’re running a business.
“Are you running a hobby or are you running a business? We get really married to the land and to the life that we get to live,” she says. “But we have to remember: we’re running a business here. Every dime that you give away is one less dime for your future and your family.”
A team can also help you stay up-to-date on tax laws. As of now, the estate tax law is changing in 2025, which could put your farm assets at risk following a death or when transitioning the farm to the next generation.
“What is currently $13 million per person is going to go back to about $5 million per person,” she warns.
Nehlsen says that’s not a lot of money if you account for the value of land, buildings, machinery, animals, and other assets that a family farm needs to stay in business.
“If that’s over $5 million… it’s a 40 percent tax on anything over and above that estate tax number.”
