Farm Leadership
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Late Tax Filing and Wrong Form 1099!
Not only will most farmers have to file after March 1, 2013 due to a delay in tax forms by the IRS, we now have an announcement that almost all form 1099s issued by the USDA for Natural Resources Conservation Services payments in 2012 are either wrong or were never issued. The expected mailing date […]
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Yes! You Can Write Off That New Machine Shop (At Least 50%)
We got the following question from a reader: “I built a new farm workshop in 2012, can i take 1/2 of the cost off and depreciate the rest over time? I read something regarding bonus depreciation on workshops and was wondering if this qualifies?” Bonus depreciation was placed into the tax laws as a result […]
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Farmer Filing Due Date Update
As most of our readers know, the IRS has extended the March 1 farmer filing deadline to April 15, 2013 for those farmers who MISS the March 1 deadline. One of the major forms that farmers were waiting for was Form 4565 – Depreciation which was released yesterday. However, there are still several forms that will […]
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Crop Insurance Proceeds on Feed Consumed by Livestock
We received the following question(s) from a reader: “My husband and I received crop insurance proceeds this year due to drought. It was for hay and pasture losses. The insurance company classifies the crop as “forage”. If this was hay we would normally feed to our cows in the following year may we defer this […]
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Capital Gains Tax On Inherited Property
We got this question from one of our readers: “My wife received about 160 acres when her mother passed away 3 years ago in a trust, which came from her grandfather who left it to her mom in trust. We were told that we will have to pay capital gains tax on what the value of […]
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Hedging Versus Speculation
We got the following question from a reader today: “I was wondering how to handle the purchase of corn options on your tax return?” The answer is one of those “It depends” type answer. If the farmer is purchasing an option for speculation, i.e. he purchases a corn call option, then he falls under the […]
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Many States Are Delaying Farmer Filing Deadline
As discussed in a couple of other posts, the IRS has extended the farmer filing deadline from March 1, 2013 to April 15, 2013 for those farmers who “miss” the March 1 deadline. We are starting to see various states follow suit as follows: Indiana Iowa Minnesota Nebraska West Virginia Some states base their filing deadline […]
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The Board is Not What it Used to Be!
Today was the first day of the Top Producer Conference. The first session was very interesting. Dr. Tom Deans, author of Every Family’s Business gave a talk on how many farmers really should be looking at “selling” the farm instead of “gifting” the farm. Too many times, the gift of the farm ends up creating […]
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Top Producer Conference
Yesterday I attended the Tomorrow Top Producer conference in Chicago. The main Top Producer gets started today and runs through Friday. Some of the observations from yesterday are: Younger producers are very worried about the availability of land to farm. With cash rents rapidly increasing and land prices exploding, they worry about their ability to […]
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Why Imputed Interest Matters For 2013 (And Beyond)
Any time a farmer loans money to a corporation that they own (or vice versus), the income tax laws require these loans to bear interest. If the loans do not bear interest, then the law requires the farmer to calculate an “imputed” interest amount based upon the applicable federal rates published by the IRS each […]