November, 2017
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Charitable Gifts of Commodities Have More Value Under Tax Reform
Farmers who donate grain get a tax benefit if they don’t itemize. Under Tax Reform, they may be able to donate more than they can now.
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Will There Be a Dividend Paid Deduction
The Senate Finance Committee has a provision in their Bill calling for a dividends paid deduction by corporation. The current rate is zero, but this may change if they can’t get the final corporate tax rate to 20%.
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Watch Out For State Taxes in Tax Reform
With major tax savings being proposed by the House and Senate, it is likely that many of those savings will not flow through at the state level. We review some of the major items.
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December 13, 2017 Farm Tax Planning Webinar
CLA will be putting on a Farm Tax Planning Webinar on December 13.
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Tax-Free Equipment Exchanges Gone But Might Not Matter (In Most Cases)
Farmers have concern that equipment exchanges will now be taxable. I explain why this may not matter. Also, the alternative calculation allowed by the House Bill for income subject to the maximum 25% tax rate may not be that generous for most of our farmers.
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Some New Goodies and Gotchas From the Senate
The Senate released revised changes to its proposal today and we review the major items applicable to most farmers.
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Will Your Tax Go Up or Down?
We have worked up a table showing the amount of tax that might be owed under the two proposals versus current rules. The differences swing between a negative 10% and a positive 47%.
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Commodity Gifts to Get More Costly?!
Buried in the Senate Tax Proposal are major changes to the Kiddie Tax that may cost farm families a lot of money. We provide an example.
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Lower Rate Versus Higher SE/Payroll Tax
The Senate Framework released yesterday has a special deduction for business income, however, it requires you to pay extra SE tax or payroll tax to maximize the deduction. It may not be worth it.
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Good News on SE Taxes
The House has eliminated its proposed self-employment tax changes and the Senate releases their tax reform framework.