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You Must Start IRAs Draws at Age 70 1/2!
We had a reader ask the following questions: “As I understand the requirement for the IRA withdrawal at age 701/2. If the person is still working at 70 1/2 then it is not necessary to draw from your IRA. Is this true? Another question can a farmer for 2013 expense the full cost of a […]
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If Corn Drops a $1, How Much Does Farmland Prices Drop?
AgriBank, which is owned by 17 affiliated Farm Credit Associations primarily located in corn belt states issued a 14 page analysis of farmland values and the effect on these values if commodity prices decrease or interest rates rise. Their analysis included regression studies and here are some of the conclusions: If net farm income or […]
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Interest Under USDA Prompt Payment Act Mean Only One Year!
We were informed of a farmer that had a several year delay in receiving his 2010-1012 FSA direct payments. Many farmers naturally assume that if the USDA is late in making payments to a farmer, interest will be paid from the original due date until the final payment date. This is true, however, only if that […]
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Cash Does Not Equal Gain
We got the following question from a reader: “I bought 3 farms in recent years. Is there a way to sell one or part of one and pay the other 2 off without paying tax on that money?” I can give a general answer to this question, but without having the actual facts of each […]
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Hot Goods
At the recent Fruit Conference we attended put on by the NSAC, Dustin Klinger, a Partner with Miller Nash, touched on a recent court case from Oregon during his presentation regarding a blueberry farm, the Department of Labor and a “hot goods” provision of the Fair Labor Standards Act and there have been recent developments […]
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Average is Important for 2013 Tax Filing
We had a reader ask the following question: “I would like to here more about income averaging over years and when should someone think of it or not?” Farmers enjoy a unique method of computing their income tax liability versus other taxpayers. Due to the possible wild swings in farm income, the Tax Code allows farmers […]
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Section 179 Update (or Not)
We had a reader ask the following: “I haven’t been able to see if there is any development in increasing the limit for Sec 179 lately for 2014. I am holding out on any equipment purchases until I see an increase in the limit. I would appreciate it if you keep us informed on any […]
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It Maybe Too Good to be True
The Wall Street Journal ran an article on Saturday regarding the Larry E. Austin et al tax court case that was decided in December, 2013 (you will need a subscription to the online version to read the article). This tax court case involved two families who owned a very successful distressed debt investment company. In […]
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Small Slip Creates Large Penalties!
David Enquist from our Moses Lake, Washington office attended a fruit industry seminar yesterday and even though this is specific to Washington State, the potential penalties can apply in many other states. Here is his report on the meeting: I attended the 2014 Fruit Industry Seminar sponsored by the NSAC on Thursday and thought I’d pass […]
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Grain Gifts – How Are They Taxed?
We had an advisor send us the following question today: “We have a farm client who is a cash basis tax payer. He is considering making a gift of grain to charity in 2014. In your opinion, would it be necessary for him to make that gift out of grain harvested in 2013 or could […]
