Farm Industry Trends
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The Coming Fiscal “Section 179” Cliff
We had a reader ask the following question: “179 depreciation is scheduled for $25,000 in 2013 do you think this will be changed? If not how would it work on a pivot worth $71,000. ? $25,000 first year and remainder $46m over 6 years ?” I am sure that the major equipment manufacturers such as […]
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Headed to Chicago for EWA
I head out for the second annual Executive Women in Agriculture conference sponsored by Top Producer magazine. I spoke at the conference last year and women tend to ask more and many times better questions than men. I look forward to speaking at this year’s event and I already have spoken to some of the […]
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2012 May Be Last Year for Section 179 Flexibility
Most farmers know the benefits of the Section 179 deduction. The deduction has been as high as $500,000, is $139,000 for 2012 and is scheduled to drop back to $25,000 in 2013. What many farmers do not know about is the ability to go back and amend their tax return to change their Section 179 […]
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IRS Bumps 2013 Standard Mileage Rates by a Penny per Mile
The IRS announced last week (IR-2012-95) a penny per mile increase in the standard mileage rate for business and medical or moving purposes. For business purposes, the rate increases from 55.5 cents per mile to 56.5 cents per mile (don’t ask me why they do not round it to the nearest penny). For medical or moving […]
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Don’t Forget The Small Employer Health Care Credit
We tend to talk more about the tax costs of Obama Care and forget about some of the tax savings that are available. One of those savings is for employers that cover part or all of their health insurance premium costs. This credit is allowed in full assuming less than 11 employees and average wages […]
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Farm Lending Rose at Fastest Pace in Five Years
Due to the summer drought spurring much higher feed costs, farm lending activity at commercial banks recorded their fastest pace in five years. According to the Federal Reserve of Kansas City in their National Trends in Farm Lending October, 2012 report, demand for short-term operating loans increased as input costs soared and herd liquidation boosted […]
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No AMT Extender May Prevent Farmers From Filing on March 1
Steven Miller, Acting Commissioner of the IRS wrote a letter dated November 13, 2012 to select members of Congress informing them on the possible delays in processing 2012 income tax returns if the AMT patch is not enacted. Under current law, it is estimated that 28 million additional taxpayers will pay some Alternative Minimum Tax (AMT) for […]
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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 […]