Wiley and Esparza Bookkeeping Inc

07/19/2025

More changes from the Big Beautiful Bill!

07/18/2025

💰 Selling Land, Stock, or Equipment? Read This First.

The Big Beautiful Bill made key changes to how capital gains are taxed — and it matters for farmers, ranchers, and investors:

✅ GOOD NEWS
🏞️ Farmland Capital Gains Exclusion Expanded
Sell land & reinvest in ag property within 2 years =
📉 Up to $500,000 ($1M MFJ) of gain excluded

⛽ Capital Gains Brackets Still 0%, 15%, 20%
✔️ Rates stay the same
✔️ Inflation-adjusted thresholds (slightly higher for 2025)

⚠️ BUT WATCH FOR THESE CHANGES:

💵 3.8% Investment Tax Now Hits Sooner
Thresholds lowered:
• Single: $150,000
• Married: $200,000
Applies to gains, dividends, rental income

🏠 1031 Exchange Cap Added
Real estate swaps now limited to $1M deferral per year

📈 Step-Up in Basis Still Safe
No change to inherited land or stock basis rules

07/17/2025

🏡 Thinking About Solar or Energy Upgrades? Read This First.

The Big Beautiful Bill made some changes to home energy tax credits — here’s what’s still good and what’s getting smaller:

☀️ SOLAR CREDIT STAYS STRONG
✅ Still a 30% federal tax credit for:
• Solar panels
• Battery storage (≥3 kWh)
• Solar water heaters
➡️ Available through 2032

🪟 ENERGY-EFFICIENT UPGRADES — CUT DOWN
⚠️ Credit reduced from 30% to 20%
⚠️ Annual cap lowered to $1,000–$2,000
Includes:
• Windows & doors
• Insulation
• Heat pumps & high-efficiency HVAC

📌 Bottom Line:
Solar still pays off. Home upgrades still count — but you’ll get less back.

07/16/2025

🐂 RANCHERS: Don’t Miss These Tax Breaks in the Big Beautiful Bill

The Big Beautiful Bill includes several key provisions ranchers can take advantage of right now — especially if you’re investing in your herd or land.

✅ Livestock Depreciation Extended
100% bonus depreciation on breeding cattle, sheep, and goats
Also eligible under Section 179 expensing

💧 Water System Deduction Boosted
Install tanks, troughs, wells, solar pumps, or pipelines
Now fully deductible in year one (limits apply)

📝 Grazing Leases Qualify for 20% Deduction
Passive income from leasing out pasture may now qualify under Section 199A

⛽ Fuel Tax Refunds Expanded
Covers feed trucks, ranch pickups, hauling, and more — even on split-use properties

🌵 Drought & Casualty Provisions Stay
Special tax relief if you sold livestock due to drought in designated counties

📌 Ranchers with active operations, leased land, or replacement herd plans — this is your window.

07/16/2025

‼️Big Beautiful Bill benefits for farmers

07/15/2025

📣 ATTENTION FARMERS & RANCHERS: CSP and EQIP Are Getting Cut

The Big Beautiful Bill made major changes to USDA conservation funding — and it’s going to hit small and mid-size producers hard.

🟥 What’s Changing:

🔧 EQIP (Environmental Quality Incentives Program)
• Funding cut by 20%
• Higher cost-share required (up to 50%) for fencing, erosion control, irrigation
• Fewer contracts available in lower-scoring regions like West Texas

🌱 CSP (Conservation Stewardship Program)
• Budget cut by 29%
• Lower payments for existing conservation practices
• Harder for farms under 500 acres to qualify
• Priority given to operations already doing advanced conservation

📉 NRCS also cut 15%, so expect delays in technical help and planning assistance

✅ What You Can Do:
• Plan early — competitive funding will move fast
• Bundle practices to improve scoring
• Work with a planner or ag consultant now

07/15/2025

NRCS staffing is being cut by 15% in the Big Beautiful Bill.

07/14/2025

There are no changes to current CRP contracts.

07/14/2025

📣 ATTENTION WEST TEXAS LANDOWNERS & FARMERS

Big changes to the Conservation Reserve Program (CRP) are here under the new Big Beautiful Bill — and they aren’t great for our region.

🟥 What’s Changing:
• CRP acreage cap cut to 24 million acres
• Rental payments reduced by 10% starting in 2026
• Stricter scoring system that favors erosion-prone or wetland areas
• General cropland in West Texas is no longer competitive in most cases

Even if your land qualified before, it may not now — flat, dryland cotton and small grains are low priority under the new rules.

🟨 Bottom Line:
• Harder to get in
• Lower payouts
• More paperwork
• Less benefit for the High Plains

07/06/2025

07/04/2025