Farm Operations
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Setup Your Deferred Payment Contracts Now
Over the next few weeks we will post some year-end tax tips and today’s post deals with using deferred payment contracts. Since most Midwest farmers are in the midst of harvest right now, this is the time to think about setting up your deferred payment contracts for year-end tax planning. These contracts call for delivery […]
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Relief for Late Payment Penalties for 2012 Tax Returns
Most farmers are aware that the IRS allowed filing of their income tax return this year by April 15 instead of the normal March 1 “farmer” filing deadline. What many farmers may not know is if they extended their tax return and ended up paying additional income tax after April 15, they may not owe the […]
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Is Your Contract Labor Really Wages?!
I came across an article in Accounting Today recently discussing states clamping down on misclassified employees (Independent Contractors v. Employers). While this article focuses on the construction industry, it certainly applies to the agriculture industry as well. Basically, what the employer v. independent contractor boils down to is who is required to pay employment / […]
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Taxpayers Want Their Cake, Frosting and Candles!
In a Tax Court case issued on Monday, October 21 (Van Alen and Tomlinson vs. Commissioner), we find taxpayers who inherited farmland property subject to a Special Use Valuation adjustment under Section 2032A. This adjustment allows an estate to elect to reduce the value of the land from its “true” fair market value downwards to […]
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IRS Releases List of Counties Eligible for Another Year of Livestock Deferral
Each year the IRS releases a list of those counties affected by drought in the US. This list is used by ranchers to determine if they have an additional year to defer the gain from selling excess livestock due to drought. Section 1033 allows ranchers a four-year period to reinvest proceeds from the sale of […]
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Watch Out for Distributions from Coops
While recently working with a client, I came across a situation I typically do not deal with on a routine basis: non-qualified patronage distributions from a cooperative. A qualified distribution is treated as a deduction on the cooperative return and the producer picks up the income amount. On the contrary, the cooperative does not get […]
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Case IH 9230 vs. JD S680
This farm boy gets the ultimate treat this weekend. I have a meeting in Des Moines on Monday and decided to fly out today to Cedar Rapids. I am going to visit some clients / friends and over the weekend I get to ride/drive both a Case IH 9230 and John Deere S 680 combine. […]
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Should You Delay Purchasing Fertlizer for Next Spring?!
Based upon some recent AgWeb articles, it may be a good idea to wait about four to six weeks before making any serious fertilizer decisions for any 2014 spring needs. Although fertilizer prices have been dropping, Russia’s OAO Urakali (URKA), the world’s largest potash producer recently announced they will be increasing output next year by 24%, which […]
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Ode to Hay
Here is my first attempt at a FarmCPA Today poem (most likely my last one too) On a perfect sunny afternoon day My client had hay That must be baled Before rain or hail Comes to ruin the day I had never operated a baler Nor been a tailor My client liked cheap labor Normally […]
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Monday is Final Due Date for Business Returns
Monday, September 16 is the final extension due date for almost all 2012 calendar business tax returns (corporations, partnerships and trusts). If you are unable to file your pass-through business return tomorrow on a timely basis, the penalty will usually be $195 per schedule k1 not file per month late. If you are late with […]