One of the best ways for Christmas tree farms to improve cash flow is to delay estimated tax payments until after the Christmas season.
Most Christmas Tree Farms Generate Income Once per Year
Now that we’re a little over halfway through 2023, your cash flow might be getting a little tight because you’ve likely had minimal (or no) income since the Christmas season.
Even though most Christmas tree farms aren’t generating much income in the summer months, you’ve likely been spending thousands of dollars on seedlings and other planting expenses, fuel for trucks and equipment, sharing expenses, herbicides and pesticides, as well as just general maintenance around the farm.
Another “expense” that must be paid are estimated tax payments.
Estimated Tax Payment Rules
The general rule is that estimated tax payments must be paid equally throughout the year.
However, this quarterly payment requirement creates cash flow issues for many Christmas tree growers because they only earn income at the end of the year when harvesting trees.
Fortunately, there are provisions in the Internal Revenue Code that allow Christmas tree growers to delay their estimated payments until after the harvest season, and in some cases, delay paying any taxes until their tax return is filed!
Find out more by reading the full article here: Improve Christmas Tree Farm Cash Flow by Paying Estimated Taxes at the Right Time.
