December, 2017
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Be Careful on Prepaying Property Taxes Before January 1, 2018
The IRS just released guidance on whether you can prepay 2018 real estate taxes and deduct on your 2017 tax return. The bottom line is the tax must have been assessed.
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The 20% Deduction for Qualified Business Income
The new Section 199A deduction enables a farmer to receive a 20% deduction based on their distributions from cooperatives. We go over some examples.
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How the Tax Bill Affects Patrons
In one of our previous posts we discussed how the new tax law will affect cooperatives. In this post, we discuss how it will affect their patrons.
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Good News and Bad News For Dairies
Under current law, dairy farmers were able to substantial reduce their taxable income due to DPAD. Under the new law, DPAD is gone and even though the “new” deduction is much larger, dairies will likely in most cases owe a lot more tax. We show you how this happens.
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How The Tax Bill Affects Coops
The new tax bill has many changes for cooperatives. This post goes over most of the major changes. In general, the bill is fairly favorable to most cooperatives.
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Don’t Prepay 2018 State Income Taxes (And Paul Makes a Mistake)
Some commentators suggested prepaying 2018 state income tax in 2017 to get an extra deduction. The new Tax Bill indicates you can’t do that. I also fess up to a mistake in one of my examples from yesterday’s post and explain how much interest a farmer can deduct.
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We Have a Tax Bill (Maybe)
It appears we have a final Tax Bill. It will be voted on next week and off to President Trump for signature assuming no bumps in the road. We go through some of the pertinent provisions for farmers.
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Recap of our CLA Webinar
We had our webinar on tax reform this morning and here are links to access a recording of the webinar or the slides.
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What Does the Cooperative Distribution Deduction Mean?
A provision in the Senate Tax Bill allows farmers in certain situations a larger deduction. We review how this works. However, the final bill may not have this provision.
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Real Estate Tax Limitation
There is some confusion on how real estate taxes will be dealt with under tax reform. We fill you in.