January, 2011

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    January 31st, 2011


    Remember – Section 179 is an Election!

    We had a reader ask the following question: “Is there an order in which I have to take depreciation? One of your explanations indicated taking section 179 first then bonus depreciation and then regular depreciation. I am wanting to take the 100% bonus depreciation on all new items and not section 179 due to the […]

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    January 26th, 2011


    Remember That Returns Revert Back to the Mean

    The first presentation at the Top Producer seminar today was done by Sterling Liddel, a vice president of economics at Rabo AgriFinance.  The slide that stood out to me the most was the long-term mean price for corn over the last 80 or so years. For about the 40 years before the Russia price shocks […]

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    January 26th, 2011


    Tomorrow’s Top Producer

    I am in Chicago this week attending both the Top Producer conference and yesterday I attended the Tomorrow’s Top Producer and also gave a brief talk on income tax changes for 2011.  There appears to be about 100 of tomorrow’s best farmers attending the conference and at lunch time, my wife and I were talking […]

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    January 24th, 2011


    Those Pesky Form 1099s

    We had a reader send in the following question: “I really got my-self confused by reading to much.  I need some clarification on the new upcoming requirement on filing 1099’s.  I know that it goes into effect for tax years after 12-31-2011.  Where I am confused is CCH say it is for amounts paid after […]

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    January 23rd, 2011


    Home Energy Credits on Existing Homes Only!

    We had a reader ask the following question: “My wife and I built a new home in 2010. We moved in on June 24,2010. Can we take the residential energy credit for insulation, windows, & doors on form 5695 for this house on our 2010 tax return? Thanks, Dave”   I am afraid that we […]

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    January 21st, 2011


    Farmer’s Health Insurance Reduces SE Tax!

    We had a reader ask the following question: “Is it true that for 2010 we can reduce our net self-employed income on Schedule SE line 3, by deducting the amount of our self-employed health insurance from line 29 of Form 1040? My husband and I farm side by side so will only his half of […]

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    January 21st, 2011


    New New – Not New to You

    We had a reader ask the following question: “I’m thinking of purchasing a farm acreage with 3 newer farm equipment buildings and some old grain storage buildings. Could I take advantage 100% depreciation since they are new buildings to me and will be used for my farm in 2011?” On the bonus depreciation rules for […]

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    January 20th, 2011


    You Can Pick & Choose on Bonus Depreciation!

    We had a reader ask the following question: “I’m thinking of putting up a farm shop and storage building this year (2011). Can I take the bonus depreciation on only half of the cost of the building and depreciate the remaining amount over the 20 year period?” Now based on my heading, you are probably […]

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    January 19th, 2011


    Machine Sheds Qualify for Bonus Depreciation

    We seem to be getting quite a few questions regarding what farm buildings qualify for the 100% bonus deprecation for 2011 (and the period after September 8, 2010).  Our latest question is as follows: “Is there any bonus depreciation on machine sheds in the year 2011?” For any new farm building placed in service during […]

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    January 18th, 2011


    TEPAP – Final Conclusions

    I spent all of last week attending the TEPAP conference in Austin, Texas.  This intensive 7 day conference is put on by Professor Danny Klinefelter of Texas A & M University.  Each day’s session would normally have two different topics covered by some of the best presenters in the farm business. I would highly recommend […]

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