August, 2017
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What is a “Cousin”
We expand on our previous post and provide examples of family and non-family farm operations for FSA purposes.
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Cousins are not “family”
For FSA planning purposes, cousins are not considered family and therefore, severe payment limits may apply.
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Consolidation in the Ag Sector
Consolidation has occurred in several parts of the Ag Sector. The Kansas City Ag Symposium discussed some of these trends.
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Watch Out For State Estate Taxes
If you combined estate is less than $11 million, you won’t owe federal estate tax, but it would be very easy to owe state estate tax if you live in certain states.
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How Fast Can We Write Off Assets Under Tax Reform
It now appears that full expensing of equipment purchases will not happen with tax reform but positive changes will still be in the new law (if it ever happens).
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Does Your Successor Really Want to Succeed You?
Most farmers assume the next generation wants to take over their operation. But have you really discussed that with them. There are resources to help you with that transition and we discussed one of them in today’s post.
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IRS Informs North Dakota of Extended Period for Livestock Rollover
Ranchers who have to sell extra cattle due to drought (such as ranchers in North and South Dakota) have to two years to find replacement cattle and defer the gain. This can get extended to four years or more.
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Farm Loan Rates Continue to Be Favorable
Interest rates paid by farmers have increased over the last year, but the increase has been fairly minor even with difficult farm prices.
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Be Very Careful What We Wish For
Tax reform would like to eliminate the estate tax. However, they may end step-up in basis and that likely be more costly to farmers and their heirs than the current system.