July, 2014
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Commodity Wages Save Payroll Taxes for Kids Too!
In my previous post today, I had recapped the wages paid to children being exempt from payroll taxes in certain situations. In the case presented, the wages in fact, were subject to payroll taxes. The one item I had forgotten to mention is that if commodity wages were paid to the children in any of […]
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Issuing a Fraudulent Form 1099 Can Cost You Money
When a farmer makes certain payments to service providers and other vendors, they are normally required to issue a Form 1099 if the total amounts paid exceeds $600 in a year. Normally, this is a very straight-forward process, however, if the farmer willfully files a fraudulent form 1099, the penalty for this can be very […]
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A Trip to the Zoo
I posted yesterday on one of the sessions from the Farm Financial Standards Council annual meeting. Last night, we traveled to the Zoo Montana for dinner. This zoo was in financial difficulty about two years ago and almost closed down. The zoo has about 70 acres of ground, however, only 25 acres is being currently […]
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Pay Your Kids; It Saves Taxes!
We had a reader ask the following questions: “Have a good understanding of payroll taxes on payroll paid to a child under 18 working in the operation. The laws are not very concise in my situation. Currently my parents and myself are 1/3 owners of a LLC taxed as a partnership. I am divorced with […]
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FSA Issues Another Update on Base Acres Reallocation
The FSA issued a release Notice ARCPLC-7 (issued on Wednesday July 30, 2014) on additional information regarding reallocation of base acres. As previously discussed many times in this blog, each “farm” will have an option to update their base acres to reflect the average acres in production during the 2009 to 2012 crop years. This […]
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Another Cattle Tax Shelter Bites the Dust
We have previously done some posts on certain cattle or horse hobby loss cases. The Tax Court released the Gardner case on Monday July 28, 2014. In this case, Mr. Gardner operated a very successful insurance business in North Carolina. In 2001, he met John and David Pearl, who operated several businesses related to cattle […]
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The Bakken From an Economist’s Perspective
The first item on the Farm Financial Standards Council annual meeting agenda was a discussion on the Bakken Oil Field by Scott Rickard, an economist with Montana State University – Billings. Here are some of the key points from the presentation: Geography – The Bakken oil field essentially covers the Western Half of North Dakota […]
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How to Handle Gift of Grain
We got this question from one of our readers: “My grandfather gave me a generous gift of soybeans for my college fund. Since he gave me the actual crop, he paid no taxes on it. When I sold it I received a check of around $8,000. I will have file a tax return for the […]
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Farm Financial Standards Council Annual Meeting
I will be attending the annual meeting for the Farm Financial Standards Council in Billings, Montana beginning tomorrow and continuing through Thursday. I have posted about the council several times before, but if you are interested in updating your financial records to the accrual method of accounting, I would highly recommend downloading the standards from […]
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Base Acre Reallocation Options Under the 2014 Farm Bill
FarmdocDaily just released today an analysis of the base acre reallocation options under the new farm bill. The report gives a very good analysis of the base acres by the various major crops and the variances between base acres and planted acres for 2012. Here are charts of the major crops by base acres and […]