Avoid the April Panic: Why December Is the Best Month for Farm Tax Prep

Every year, many farm business owners scramble in April, trying to collect receipts, review last year's tax return, and meet IRS deadlines. But there's a smarter, more proactive way: get ahead in December and transform tax season into a breeze for your farm's federal income tax, income tax return, and tax year reporting.

1. Get Organized Before Year-End

December marks the end of the calendar year, and maybe your fiscal year. It's the ideal time to finalize your gross income, tally taxable income, review farm income, and identify farm expenses before the IRS year closes. FarmRaise recommends using its platform throughout the current year so that when December arrives, your numbers (Schedule F, farm business profit and loss, and assets) are already in place.

With FarmRaise Tracks you can:

• Link bank accounts to automatically import transactions from last year and the previous year.
• Snap receipts, categorize expenses (seed, feed, property taxes, real estate, repairs) under Schedule F categories, and maintain a digital archive—perfect for tax purposes and tax deductions.

2. Optimize Deductions & Credits

December isn't just about consolidation. It's about tax planning. Want to lower your tax liability or reduce self-employment tax?

• Review big purchases: equipment, farm buildings, assets for depreciation or Section 179 deduction eligibility in the current year.
• Pre-pay expenses such as input orders, feed, or repairs before year-end to maximize expense deduction in this tax year.
• Track mortgage property taxes, insurance, and real estate costs that can be deductible on Schedule F or Schedule C.
• Use FarmRaise's Funding Library to locate farm-specific tax credits related to conservation, energy, or sustainable practices and consult a tax professional to apply them to your federal income tax return.

3. Tackle Estimated Tax Prepayment Early

If your taxable income fluctuates, as it often does in agriculture, estimated taxes paid quarterly are critical. Missed payments can trigger penalties. By December, you can forecast your year's total farm income, self-employment tax, other earnings, and adjust your estimated tax payments to cover any gaps. A year-end planning session with your tax professional ensures you're not underpaying IRS prepayment requirements or holding on too much cash unnecessarily.

4. Build a Smooth Tax Season & Filing Workflow

April and the clutter that comes with it make tax filing stressful. But if your last month of the tax year is already tidied up:

• Your tax forms (Schedule F CSV, Custom Transaction CSV, receipts exports) are already organized and ready to hand off to your CPA or tax professional.
• Use FarmRaise to generate a near-complete Schedule F (excluding depreciation, Section 179, and self-employment tax lines), saving you time and reducing errors.
• Have your prior year returns handy for carryover items (e.g. net operating losses, capital gains, IRA contributions). These inform your tax move this year. FarmRaise Tracks can export previous year P&L and balance sheet data for reference.

Once the end of the year rolls around, your tax preparation is nearly done before January.

5. Leverage FarmRaise Tools to Stay Ahead

FarmRaise Tracks and its accounting ecosystem offer powerful supports to make December prep natural, not panic-inducing.

• Monthly accounting calendar: follow structured reminders (Jan through Dec) to track key items each month, including November recommendation to review retirement plan or IRA contributions, and December's final reconciliation and asset review.
• The Annual Financial Planning add-on provides quarterly sessions with farm-savvy accountants, helping with budgeting for future years, adjusting strategy, and improving compliance. The Q4 session, in December, should include a tax review and tax planning for next year.
• FarmRaise's Funding Library connects you to USDA and Department of Agriculture incentives and tax credit opportunities. Capture those records early so they integrate naturally into year-end review.

6. Why December Beats Procrastination

BenefitApril PanicDecember PrepDocument completenessMissing receipts, scattered paperworkOrganized CSVs, receipts, exportsSchedule F readinessLast-minute entriesPre-filled categories via TracksTax deductions & depreciationMay already irretrievable in prior yearFull Section 179 or depreciation planEstimated tax accuracyUnforeseen penalties or cash drainAdjusted for farm income changesCPA turnaround speedRush appointments, delays, errorsSmooth hand-off, faster review

7. Focus on Farm Business Growth—not Tax Stress

With December preparation, you give yourself the freedom to focus on production, not paperwork. Your farm operation benefits when growers, landowners, and ranchers stop treating tax filing as a scary sprint and instead treat it as a strategic tool built into year-end planning.

FarmRaise Tracks users repeatedly report less time lost in organizing farm expenses, gross income categories, and depreciation records.

8. December Checklist: Tax Prep for Farm Business

1. Reconcile bank & credit accounts
2. Finalize receipts, invoices, and mileage logs for the current year
3. Make asset purchases if planning capital gains, depreciation, or Section 179
4. Pre-pay necessary farm expenses or real estate taxes
5. Export Schedule F, transaction CSV, profit & loss, balance sheet final versions
6. Review prior year returns for tax credits, IRA, net operating loss carryovers
7. Work with FarmRaise's Annual Financial Planning session for tax planning
8. Send documents to your tax professional before year-end so early January the IRS-related forms can be filed promptly

9. Avoid April's Tax Season Rush

By focusing on December, you eliminate the April tax time scramble. Your tax filing deadline (usually mid-April for Form 1040 with Schedule F, or mid-January if fiscal year differs) is no longer a stress trigger. You're proactive, not reactive. You've managed your tax planning, prepayments, deductions, depreciation, estimated tax, and credits early with clarity.

10. Get Started Today

• Use the FarmRaise Monthly Farm Accounting Calendar to track items all year and hit December with clear financials.
• Keep FarmRaise Tracks updated with income, expense, mileage, assets, and liabilities so your tax forms and Schedule F are continuously ready.
• Use FarmRaise's Maximizing Your Tax Write-Offs guidance to ensure all allowable deductions such as feed, fuel, seed, property taxes, depreciation, and insurance are captured to reduce your tax liability.
• Leverage the Funding Library and Annual Financial Planning for tax credits, USDA programs, and tax prep support before year-end.

Final Thoughts

Waiting until tax season to prepare your income tax return, gather farm expenses, and consult the IRS or tax professional is a recipe for stress and missed opportunities. December offers clarity, deductions, and better tax planning. Your estimated tax payments can be refined. Depreciation and assets can be optimally allocated. Schedule F reporting becomes seamless.

FarmRaise Tracks and its ecosystem are built to support this proactive approach. By integrating your farm's financial management into daily workflows and using year-end structures like the tax checklist, you'll avoid having to scramble in April. Instead, you'll have time and headspace to focus on what really matters: running and growing your farm business year after calendar year.

This December, commit to avoiding the April panic. Spend your holidays planning, not panicking. Use FarmRaise to make tax preparation a strategic asset instead of a liability. Your tax season and your farm business will thank you.

Ready to get started? Sign up for FarmRaise today and start building a better future for your farm. Use code IT3H12B at checkout for 20% off or use this link to checkout now.