October, 2011
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Watch Your Section 179 Deduction From Multiple Entities!
With the increased Section 179 deduction available in 2011 of $500,000 farmers need to be very careful if they have ownership in multiple partnerships and S corporations that will be purchasing large amounts of used equipment and deducting it under Section 179. The partnership and S corporation have an overall $500,000 Section 179 limitation on deducting at […]
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Senate Proposes Some Farm Tax Savings In Millionaire Tax Bill
The American Jobs Act introduced in the Senate last week (commonly known as the Millionaire Surtax Bill) contains some provisions that will help out our farmers. These are: Extend the 100% bonus depreciation until December 31, 2012. It is currently in place for all of 2011 and at 50% for 2012. This would make it […]
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If It Sounds To Good To Be True – It Usually Is!
Two recent Tax Court cases reinforce the old saying of “If it sounds to good to be true – It usually is”. In the cases, two relatively wealthy taxpayers consulted with a CPA at a Big 6 CPA firm and entered into transactions to convert a regular IRA with assets in excess of $1 million […]
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Gift of Farm Commodities
We had a reader ask the following question as a follow up to our post of gifts: “Please touch on one more aspect of gifting. Gifting grain and the tax owed by the recipient. Thanks, I enjoy your emails.” Cash method farmers have had many situations where the gifts of farm commodities to family members […]