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Farm Taxes

  • Advisor-With-Seniors-Table

    Some Examples of New Proposed IRS Rules on Valuations

    Last week we did a post on the new IRS Proposed Regulations that would limit minority discounts on transfers of family interest. This post shows a few examples of how this might work.

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  • Peasant and business man talking on wheat field during harvesting

    Corporate Grain Gifts Better Than Cash

    Instead of giving cash from your C corporation to a charity, consider gifting grain instead. This can save you some taxes and most charities in the farm states are set up for this process.

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  • cowboy with lasso silhouette at small-town rodeo

    IRS New Attacks on Valuation Discounts

    The IRS issued proposed regulations on August 2, 2016 that may eliminate some or almost all of the discounts that family farms can take via the transfer of land or operations.

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  • Wind Machine on Farm

    IRS May Be Backing Off on Assessing Self-Employment Tax in Some Cases

    The IRS has tried to assess self-employment tax on receipt of Conservation Reserve Program (CRP) payments even if the taxpayer was not a farmer. Roger McEowen at his Agricultural Law and Taxation Blog reviews a recent IRS audit where they did not assess SE tax on CRP payments for a non-farmer.

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  • Farmer-in-Field

    Will Excess Loss Rules Apply to Your CCC Transactions?

    Last week, we did a post on how electing to receive a loan deficiency payment (LDP) may negatively affect the amount of ARC or PLC payments that you will receive in October 2017 for the 2016 crop. One option to get around these limits is to place a loan on your crop (most likely only hard red wheat for the 2016 crop year, however, corn may get close in certain parts of the country) and then pay it off with a commodity certificate. The net gain to the farmer under this strategy will not reduce the amount of ARC or PLC payment in 2017 (assuming the farmer will max out on these payments).

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  • Businessman-Thinking-At-Laptop

    IRS Continues to Have Issues With Payroll Tax Deposit Due Dates

    For some reason the IRS can not seem to get their computers to understand that the United States actually follows certain holidays during the year. All payroll tax deposits have certain due dates and if these due dates fall on a holiday, the due date automatically gets rolled forward to the next business day. However, the IRS computers sometimes gets confused and still thinks the due date is on the holiday and sends out penalty letters.

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  • Peasant and business man talking on wheat field during harvesting

    Be Careful With LDPs

    Several wheat growing areas of the US are now seeing the option to receive Loan Deficiency Payments (LDP) in lieu of doing a loan with the Commodity Credit Corporation.  These payments represent the spread between the current loan rate per bushel and the lower of the 30 day Posted County Price (PCP) or the alternative […]

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  • Woman using loptop on patio

    AICPA Farm Tax Webinar Rebroadcast

    For those of you that were unable to attend the AICPA Ag Conference in Denver this year, there is a rebroadcast of the Agricultural Income and Estate tax seminar that Roger McEowen and myself presented on day one.

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  • How to Pay Your Children

    The Tax Court released a case earlier this week (Embroidery Express LLC TC Memo 2016-136) that provides very good advice on how to pay your children (or how not to pay them).  As we have previously indicated, one of the best deductions for farmers is to pay their children under age 18 (for sole proprietors […]

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  • Will CCC Loans Limit My Farm Loss

    The tax laws require excess farm losses to be limited if the farmer receives an applicable subsidy or has a loan from the Commodity Credit Corporation (CCC).  Applicable subsidies were direct, counter-cyclical and ACRE payments under the old 2008 Farm Bill.  These payments were repealed by the 2014 Farm Bill, however, loans from the CCC […]

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