Writing Checks in 2012 | Video

Joel Porter | 12/31/2012

The Bush era tax cuts are set to expire at midnight, which means many business and landowners will be paying higher tax rates next year. Many people are taking care of business now rather than waiting around for those rates to jump. Both attorneys and accountants have had a busy month finishing paperwork for clients who are trying to capitalize on lower tax rates and exemptions.

Many farmers around North Dakota had a big, shiny green toy under the tree in time for Christmas. "Combines, we`re sold out again for next year already," said RDO Equipment Account Manager Shawn Arndorfer.

If nothing "Runs Like a Deere," than nothing encourages people to spend money like a big tax break. Something Arndorfer says farmers won`t have in 2013.

"They`ve been planning for this at least since the elections were over, knowing which way the tax law was going to start going," said CPA Pat Senger.

Across the board, farmers and business owners have been calling up their accountants and attorneys, making a few financial moves before capital gains tax rates increase.

"Because land values have gone up so much in the past few years, they do have to do a lot of estate planning to try to reduce the size of their estates before the end of the year," Senger said.

"This year, if you buy a new piece of equipment, there`s a certain amount of money that you`ll be able to write off on your taxes for next year. Next year`s tax laws, the way they`re looking, that amount is going to be significantly less," Arndorfer said.

It`s not only farmers who are fast-tracking their assets. Senger says cash-based businesses are also speeding up their paperwork. " They`ve went back to the person that they`re dealing with in their contract and making sure they get the payment before this year`s up because they should have the payment in hand before the end of today to get the capital gains break."

With no deal to avoid the Fiscal Cliff in sight, both farmers and business owners are making sure the checks are written before the ball drops at midnight.

A delay on the Fiscal Cliff negotiations could also affect tax season. The IRS can`t even begin printing out 2013 tax forms until a deal is reached.

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