Be Careful of R&D Credit Statute of Limitations
Many farmers will elect to file an R&D Credit on prior year's returns
Many farmers are starting to file Section 41 R&D tax credits. These credits are allowed on prior year’s tax returns; however, you must be careful not to run into statute of limitations issues. You normally only have three years to apply for a refund from either April 15 or October 15 if the return was extended (for individuals).
First, you also need to understand that these tax credits are only allowed to offset taxable income generated by the farm operation. If you normally show a loss or little taxable income from farming, but have other sources of income, these tax credits may not provide much value to you.
