June, 2011
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Get Cash in 2011, Pay Tax in 2013
With the rapid increase in farm land prices over the last year or so, many farmers are now considering selling some farm land to lock in these high prices. The Tax Code allows a farmer to reinvest the proceeds from this sale into other real estate using a tax-deferred exchange under Section 1031 (commonly known […]
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Tools to Help You Make a Decision on What to Plant
With the late harvest in Ohio and other areas affected by all of the heavy rain and bad planting weather, many farmers face crucial decisions on what crops to plant. Should they take a risk on planting corn, switch to soybeans or collect insurance on prevented-planting acreage. You can check out these tools to help […]
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How Does Depreciation Recapture Work?
We got the following question from one of our readers: “When does depreciation recapture on equipment kick in? For example a 20 year old tractor fully depreciated sells for $30,000 cash. It cost $50,000 new. Is any of the $30,000 considered a capital gain?” This is a fairly common transaction for many farmers during their […]
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2011 Capital Gains Tax Rates
We seem to be getting a lot of requests or searches on what the capital gains tax rate is for 2011. In summary, capital gains and qualified dividend tax rates are as follows: Short-term (assets held less than a year) are treated as ordinary income. This means that the maximum tax rate will be the […]
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Tidbits From The Kansas City Fed – Part 2
Following our theme of providing tidbits from the Kansas City Fed Report: Milk producers have had at least three plus years of unprofitable operations. The Fed estimated that the average US dairy lost $4 dollars per hundredweight in 2006, made about 50 cents in 2007 and the lost $11, $7 and $4 for 2008-2010. On […]
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Tidbits From the Kansas City Fed – Part 1
As many of our readers know, we tend to quote the Kansas City Federal Reserve from time to time. They have a very good website with several quarterly reviews of the ag economy and farm land prices. They recently put out a report titled “Outlook for the Rural Economy” that has several interesting tidbits that […]