How Many Will Switch to a C Corporation in 2026?

If the Trump Tax Cuts expire after next year, will farmers switch to a C corporation for their farm operation?

Photo by Zoe Schaeffer on Unsplash

One of the major concerns of Congress when they enacted the Tax Cuts and Jobs Act back in 2017 was to maintain some type of tax neutrality between pass-through businesses and C corporations.

With the reduction of the top corporate tax rate from 35% to 21%, a “reduction” in the tax rate for flow-through companies was needed. Thus, the enactment of the Section 199A 20% deduction.