Tax Return Changes for Farms and Ranches | HelloBooks Full expensing for equipment and specified plants, Section 179, rural Opportunity Zones and farmland sale rules. What farm and ranch clients need.
Farm clients buy equipment, plant orchards and vineyards, and sometimes sell land. Each of those has a change attached.
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Bonus depreciation
100%, including specified plants
Applies: Tax years 2025 and 2026From IRS.gov · checked October 10, 2026
Full expensing covers machinery acquired after January 19, 2025 and specified plants planted or grafted after that date. The Section 179 limit is $2,560,000 for 2026, phasing out from $4,090,000 of purchases.
OBBBA also added a provision on gains from selling certain farmland, with guidance in Notice 2026-03, and rural Opportunity Zones get a lower improvement test. For family farms, the $15,000,000 estate exclusion for 2026 eases succession planning.
Keep equipment, buildings and planted crops as separate asset classes with acquisition and planting dates. Seasonal workers paid as contractors need W-9s before payment, and from 2026 they need a 1099-NEC only from $2,000.
The plain-English summary for business owners
Business returns · Form 4562
Business and investment · Opportunity Zones
Estates and gifts · 2026
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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