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More than 100 but Less than 500
When a farmer or taxpayer owns an S corporation that incurs a loss, the farmer must show that they have materially participated in the companies operations in order to deduct the loss. The slam dunk test is that the owner works for more than 500 hours. If the owner works for less than 100 hours, then […]
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Mid West Crop Tour – Wednesday
What a difference a day makes. On Tuesday, we saw really good corn in Indiana and slightly better than average corn in Eastern Illinois. I woke up this morning expecting to see excellent corn in the rest of Illinois and pretty good corn in Iowa. We left Bloomington and headed toward Peoria to get started […]
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Mid West Crop Tour – Tuesday
Today was a tale of two states. We started in Indianapolis area and went due west to the Illinois border taking six corn and bean samples in Indiana. We had two low samples in the 170 range, two in the 210 range and finally two in the 250 range for an average of 210. This […]
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Mid West Crop Tour – Monday’s Recap
This is my fifth year of the Mid West Crop Tour and I must admit this is the longest day so far. We left Dublin, Ohio this morning around 7 am and headed north to Bowling Green, Ohio and then turned west on the north side of Fort Wayne, Indiana and then turned south toward […]
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The Mid West Crop,Tour Begins
The Eastern Leg of the Mid West Crop Tour met up at a hotel in Dublin, Ohio tonight and got instructions for this years crop tour. A nice new feature for this year is the introduction of an App to record our counts and then submit them electronically. This should allow Pro Farmer to get […]
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Mid West Crop Tour
Pro Farmer conducts a Mid West Crop Tour each year. There are two legs to the tour. The Eastern Leg starts in Columbus, Ohio this Sunday night and on Monday, about 11 routes are conducted from Columbus to Fishers, Indiana. These routes will go over the exact same roads as in previous years, however, the […]
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Sale of Gifted Grain Can Be Tax Free
We had a reader ask the following question: “We want to gift our daughter (she is not a dependent) some grain that is from the 2012 growing season. We plan to have the elevator issue her a contract to show ownership and then she can call them and sell the grain when she is ready. […]
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Three Years is the Normal Statute of Limitations, But Not Always
I get a phone call or email many times during the year asking how long a taxpayer needs to keep documents. The answer is “it depends” as is usually the answer for all tax questions. The IRS generally has three years from the due date of your tax return to assess additional tax. Therefore, if […]
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How Does Section 179 Work?
A reader sent us the following question: “I am wondering how many dollars worth of used machinery I can purchase and use for 2014 income deduction. I do not understand Section 179.” I get this question fairly often especially regarding how much Section 179 farmers can use for 2014. The current law is that a […]
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Split ARC and PLC to Maximize Payments
Under the 2014 Farm Bill, a farm will need to decide between ARC and PLC on a covered crop-by-crop basis. However, many farmers have multiple farms registered with the FSA office(s). These farms may be composed of operations in multiple counties or states; multiple entity ownership; or for a number of other reasons. Since the election is by […]
