Farm Taxes
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Relief for Filing Some Partnership Returns Late
The due date for partnership returns was accelerated by month beginning in 2016. Many partnerships were not aware of this and got hit with penalties. The IRS just announced today that these partnerships will not be subject to the penalty and will receive a refund for any penalties paid. This is good news.
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Watch Out For State Estate Taxes
If you combined estate is less than $11 million, you won’t owe federal estate tax, but it would be very easy to owe state estate tax if you live in certain states.
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How Fast Can We Write Off Assets Under Tax Reform
It now appears that full expensing of equipment purchases will not happen with tax reform but positive changes will still be in the new law (if it ever happens).
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IRS Informs North Dakota of Extended Period for Livestock Rollover
Ranchers who have to sell extra cattle due to drought (such as ranchers in North and South Dakota) have to two years to find replacement cattle and defer the gain. This can get extended to four years or more.
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Be Very Careful What We Wish For
Tax reform would like to eliminate the estate tax. However, they may end step-up in basis and that likely be more costly to farmers and their heirs than the current system.
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IRS Warns More Info May Be Needed to E-File Business Returns
The IRS will start to require additional information to e-file business tax returns.
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“Some Assembly Required”
Over the years, the most dreaded words I hear are “some assembly required”. This can also apply to tax planning. Make sure to do all of the steps and you will end up with a good plan.
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Should You Consider a Cash Balance Plan
If you are nearing retirement and face a large income tax bill, you may want to consider using a cash balance plan to reduce those taxes.
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Farmer Equals Step-Up – Share-Crop No Step-Up
When a farmer passes away, the heirs can get a step-up in basis on farm inputs and deduct them again. However, if this is a crop-share landlord, the tax rules may prevent this double deduction.
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Will You Be Able To Deduct Business Interest Under Tax Reform?
Business interest deductions may be limited under tax reform. We give you some of the details.