September, 2015
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IRS Provides List of Counties Eligible For Additional Extension on Livestock Replacement
If a rancher is required to sell extra livestock related to drought or other weather events, the tax laws allow the rancher up to four years to replace that livestock with other livestock purchases. However, if the county or any contiguous county continues to be listed as having exceptional, extreme or severe drought during the […]
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Oral Agreements Can Be Messy
There was a case in Iowa involving tenant/landlord relationships that turned sour over a purported “oral” agreement. A retired farmer agreed to lease about 700 acres to a tenant farmer. The written lease called for a cash rent payment of $200 per acre. Due to increasing prices in 2007 and 2008, the tenant agreed orally to […]
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Involuntary Conversion of Livestock
Due to much of the western US being on fire, we have received more than a few inquiries about tax treatment of involuntary conversion of livestock. If a farmer sells livestock because of consequences of a drought, the payment of income tax on the taxable gain from the sale may be postponed. There are two […]
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USDA Extends Dairy Margin Protection Program Deadline
The USDA announced yesterday that the deadline to sign up for the dairy margin protection program has been extended to November 20 from the current September 30 deadline. They indicated that with fall harvest, this is a hectic time of year for many dairy farmers and wanted to give them additional time to get enrolled. […]
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What About Those AFRs?
Periodically I will get a question from a client asking me “How much interest they have to charge on a loan to their child or some other related party?”. The answer can be a little b confusing. You are not required to charge interest on any loan; however, we recommend that you at least charge […]
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A Survey on FarmCPAToday
We have been doing this blog for over 6 years now and we have never asked for any formal feedback regarding the blog. We continue to get many emails regarding various posts, but we are now asking for your input on how we can improve the blog, etc. We have created a very short survey […]
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Additional Comments About KC Fed Ag Symposium
Back in July, the Kansas City Federal Reserve Bank held an Ag Symposium (which they have done annually since 2010). The first part of the symposium was a presentation by Dr. Michael Boehlje of Purdue on “The Ag Outlook: An Economic Downturn“. Here are some my observations from that presentation: Real US Corn revenue per […]
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September 15 is Worse Than April 15
After being a tax CPA for over 30 years, I always get questions about how tough April 15 must be for us tax preparers. April 15 is tough; however, I believe that September 15 and October 15 are much tougher. September 15 is the deadline for calendar year extensions for all business returns plus trust […]
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Surprise! Surprise! – Check with FSA now on your ARC/PLC signup
A few producers in Southern Minnesota have brought this to our attention recently. Many who think they are signed up and are good to go for 2014 and 2015 ARC/PLC payments are not done. There is a final step that must be completed by September 30th. After you formally elect ARC/PLC coverage, the final step […]
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Don’t Forget Those Fuel Tax Credits
Most farmers obtain dyed diesel without having to paying federal and in most cases state excise taxes. However, there can be many other uses on the farm that will allow a farmer to claim a fuel tax credit on Form 4136. Some of these uses are: Any field use of gasoline powered tractors/combines, Any field […]