Farm Taxes

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    April 15th, 2015


    Another Bites The Dust

    I got married back in 1982 and my wife and I had discussions about playing the song “Another Bites the Dust” by Queen as we were walking down the aisle but saner heads prevailed and we kept it more traditional.  Plus, we thought about everyone over age 30 in the audience would not know the […]

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    April 15th, 2015


    2012 Taxable Farm Profits (Are Still Negative)

    The USDA Economic Research Service just released a nice chart showing the total reported taxable farm income and farm losses from 1998 to 2012.  Over the 15 year period, the net tax farm income number was never positive, however the trend from 2007 to 2012 increased every year. Farmers, in total, reported gross profits from […]

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    April 13th, 2015


    Watch Out for Employment Tax Fraud

    One of the easiest ways for someone to commit fraud is to prepare employment tax returns for farmers and handle the remittance of the funds to the IRS and appropriate state authorities.  What will happen is the farmer transmits the funds to the third-party preparer assuming that person will then remit the funds onto the […]

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    March 24th, 2015


    Tax Court Allows $11 Million Horse Loss to Stand

    The US Tax Court in the Metz case released yesterday allowed taxpayers who had claimed over $11 million of losses related to a horse farm to stand.  As we have previously discussed, the Tax Court reviews 9 tests in any case with possible hobby ramifications.  If the “business” is deemed to be a hobby, then […]

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    March 11th, 2015


    IRS Provides Guidance on Repair Regulations

    I am not sure if I have seen more angst from tax preparers over the last year (other than Obama Care) than on the new Repairs Regulations that came out over a year ago.  Many preparers assumed that wholesale Form 3115s were needed to accompany all of taxpayers tax returns for the 2014 tax filing […]

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    March 2nd, 2015


    IRS Has Impeccable Timing (As Usual)

    It was announced a couple of weeks ago that about 800,000 Form 1095-A were issued by the government with incorrect information.  As a result of this error, the government has issued relief from certain filing requirements or penalties associated with these incorrect forms. The latest News Release was released just last Friday indicating that qualifying farmers […]

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    February 20th, 2015


    Perhaps 800,000 or More Form 1095-A Are Wrong

    If you obtained health insurance through the federal or state exchanges, you may receive an email and phone call from the exchange in the next few days.  There was a widespread error on Form 1095-A where the costs of the second-highest silver level plan premiums may have been prepared incorrectly.  The errors on these forms […]

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    February 18th, 2015


    Here We Go Again

    Yet again, we have additional guidance on health insurance arrangements where employers reimburse employees for individual health insurance policies or pay individual policy premiums directly.  These types of arrangements, called employer payment plans, are disallowed by the ACA and are subject to steep excise taxes.  In Notice 2015-17, the IRS made some transitional relief available […]

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    February 16th, 2015


    You Don’t Need to File Those Form 3115s After All

    The IRS had issued new Regulations more than a year ago dealing with repairs, materials and supplies and related capitalization of asset purchases.  In my opinion the new Regulations were actually fairly taxpayer friendly, however, there was much discussion by many firms that all taxpayers would be required to file a Form 3115 (a form […]

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    February 16th, 2015


    Join US For AICPA Ag Conference in July

    The final agenda for the 2015 AICPA Ag Conference is just about complete and I think it will be as good or possibly even better than the 2014 Ag Conference held in Austin, Texas last May.  There will be good mix of presentations.  There will not be just one focus on tax, accounting or producers, […]

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