Updated January 2025 · 8 min read
Farm & Ranch Tax Planning in Montana
Keep Montana farm & ranch finances resilient.
Manage seasonality with entity structure
Producers often mix multiple entities (LLCs, partnerships, corporations). Review ownership annually to keep liability protection strong and minimize self-employment tax.
Elect S-corp status for profitable service operations while leaving land-holding entities as partnerships to simplify basis tracking.
Leverage ag-specific deductions
Section 179 expensing can front-load deductions, but coordinate with lenders so financial statements still meet covenant targets.
Explore Montana property tax relief for equipment and the federal fuel tax credit for off-road usage.
Plan generational transitions early
Use gifting strategies, buy-sell agreements, and conservation easements to keep farmland in the family while covering estate taxes.
Document compensation for family members who work on the ranch to avoid disputes and keep payroll compliant.