November, 2012
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IRS Announces It Does Not Like Fixed Dollar Gifts
Albert and Joanne Wandry had made various gifts or partnership/LLC interests to their children and grandchildren over several years. When making the gifts, the Wandry’s provided specific language in the gift documentation noting a gift of a fixed dollar amount. It is difficult to value a partnership interest based upon a fixed dollar amount until after […]
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20%/33%/45%/59% – How Much Will Your Capital Gains Rate Go Up By?!
Assuming that the Bush Tax Cuts are not extended, we know that capital gains tax rates will increase in 2013. The key question, is by how much. Here is a brief recap of the increases: 20% – If you acquire property after December 31, 2000 and hold it for at least five years, your maximum […]
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Surprise! – IRS Does Not Promote “First Time Abatement” Program
Shortly after September 15 of each year, I spend multiple hours as a CPA writing letters to the IRS in response to late filing notices for partnerships and S corporation tax returns. In almost all cases, after writing the letter, the IRS will abate the penalty and the taxpayer will not owe for the late […]
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ObamaCare Here To Stay (At least 4 more years)
I spent three of the last four days giving a seminar on the economic and tax effects of ObamaCare in Yakima, Kennewick and Boise and it was interesting to hear the feedback from farmers and other business owners. The first two days, the audience wanted to know my opinion on what would happen if Romney […]
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Farming and Rural Indexes Grow
The Rural Mainstreet Index put out by Creighton University climbed to its highest level since June of this year. The index had been flat or lower due to the drought during the previous three months, but with the report released last month, it rose to a solid 56.6 from September’s weak 48.3. It was the […]
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Get Ready For The New Medicare Tax Increase on Earned Income
As part Obama-Care put into effect in 2010 is a provision to increase the employee portion of the Medicare tax from the current 1.45% by .9% to a total rate of 2.35%. This new rate only applies on the amount of earned income in excess of $200,000 for single taxpayers and $250,000 for married couples […]
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Updated Harvest Prices
Although the final corn and bean harvest prices have not been officially revealed, the University of Illinois in their FarmDoc daily blog, just released their final harvest estimate. Back on October 11, I posted a guess of the final corn price being $7.55 per bushel. FarmDoc indicates a final price of $7.50 (I was a […]