October, 2016
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Watch Out for Taxation of “Hedges”
Many “hedges” are being marketed to farmers lately. Many of these “hedges” do not qualify as tax hedges and the consequences can be harsh.
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“Generic” Base Acres
If you are a cotton farmer, what you plant may increase your ARC-CO payments. For all other farmers, it does not matter.
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Remember ARC-CO Payments Are Not Contingent on Planted Acres
There is some confusion on whether ARC-CO payments are made based on what you plant.
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Social Security Benefits to Increase .3% in 2017
The Social Security Administration just announced that benefits will increase by .3% beginning in 2017.
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Get a Deduction for Donation of Raised Farm Products
Farmers usually get no deduction for donating farm products. However, there is a special provision that allows a deduction of 50% of the fair market value of the farm product in certain situations.
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Be Careful of New Tax Filing Due Dates
Many of the tax due dates have been changed. We review most of the major changes.
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Proposed IRS Regulations May Lead to More Phantom Assets
The new IRS proposed Regulations on estate valuations have some more “phantom” assets that may get subject to the 40% estate tax. We review one that could hit farmers.
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USDA to Issue $7 Billion of Program Payments
The USDA announced over $7 billion of ARC and PLC payments yesterday. Our blog shows some of the highlights of the announcement.
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Many Ranchers Can Defer Livestock Sales for Another Year
If your county is in a drought situation and you had to sell excess livestock due to the drought, you may be able to defer reinvesting these proceeds for another year (beyond the normal four years). The IRS just released a notice listing the counties that qualify.