August, 2016
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Hard Red Winter Wheat LDPs Hitting 40 Cents Per Bushel
I was checking the USDA Daily LDP Rate website today and Hard Red Wheat has hit at least 40 cents per bushel in many states (primarily Colorado, Kansas and Oklahoma). Almost all other major wheat-growing states have some type of LDP for Hard Red Winter Wheat. All other classes of winter wheat appear to well […]
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US Better Get Started With Tax Reform
The EU filed a claim for $14.5 billion of back taxes from Apple. This has Congress and the IRS unhappy. This may help lead to major tax reform in 2017.
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IRS Provides Guidance on Late Bonus Depreciation & Section 179 Elections
Many farmers have fiscal year-end corporations and partnerships. For those returns filed with a year-end ending in 2015, the IRS provided guidance today on how to handle bonus depreciation taken or not taken on the return.
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An Updated Look and New Email Alerts
Just like the kids get new clothes for back to school, our blog got a fresh look for fall! Subscribers: keep an eye out for email alerts. They are going to look a little different (and might get caught in your spam folder).
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USDA to Buy 11 Million Pounds of Cheese and Extend Dairy MPP Deadline
The USDA announced yesterday that it will buy 11 million pounds of cheese for approximately $20 million to help dairy farmers combat a cheese glut. The 2014 Farm Bill had authorized the USDA to purchase certain dairy products when margins got low. Currently, the margins are not quite to that level, however, the USDA has certain flexibility regarding what they can do to help.
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Some Examples of New Proposed IRS Rules on Valuations
Last week we did a post on the new IRS Proposed Regulations that would limit minority discounts on transfers of family interest. This post shows a few examples of how this might work.
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Corporate Grain Gifts Better Than Cash
Instead of giving cash from your C corporation to a charity, consider gifting grain instead. This can save you some taxes and most charities in the farm states are set up for this process.
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IRS New Attacks on Valuation Discounts
The IRS issued proposed regulations on August 2, 2016 that may eliminate some or almost all of the discounts that family farms can take via the transfer of land or operations.
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IRS May Be Backing Off on Assessing Self-Employment Tax in Some Cases
The IRS has tried to assess self-employment tax on receipt of Conservation Reserve Program (CRP) payments even if the taxpayer was not a farmer. Also, if a farmer makes the de minimis election to expense all items costing less than $2,500, the later sale of these items were assumed to be subject to self-employment tax. […]
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Will Excess Loss Rules Apply to Your CCC Transactions?
Last week, we did a post on how electing to receive a loan deficiency payment (LDP) may negatively affect the amount of ARC or PLC payments that you will receive in October 2017 for the 2016 crop. One option to get around these limits is to place a loan on your crop (most likely only hard red wheat for the 2016 crop year, however, corn may get close in certain parts of the country) and then pay it off with a commodity certificate. The net gain to the farmer under this strategy will not reduce the amount of ARC or PLC payment in 2017 (assuming the farmer will max out on these payments).