Farm Taxes
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Are You a Farmer?
Many farmers will not qualify as a “farmer” for estimated tax purposes and the possible penalty is much higher than in prior years.
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What Might be in Year-end Tax Package?
There is a very good chance that some tax laws will get passed by the end of the year. We review what they might be.
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Will 100% Bonus Depreciation Get Extended?
100% bonus depreciation will drop to 80% starting January 1, 2023. There is chatter about extending 100% to December 31, 2025.
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K-2/K-3 Guidance Not Quite As Good
Not all farm partnerships will get a blanket exemption from the K-2/K-3 Forms. We explain why.
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Good News on K-2 / K-3 Forms
It appears that most farm partnerships will not need to prepare Form K-2/K-3 for the 2022 income tax return.
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Excess Fertility – Is it Fully Deductible?
Excess fertility on purchased land can be deducted. However, the amount may not agree to what an agronomist might indicate.
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Older Farmers Can Contribute $30,000 to a 401(k) Plan
Farmers can contribute more to retirement plans in 2023 and we go over the details
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Yes, You Really Can’t Defer Your ERP Payment
We continue to have farmers ask why they can’t defer their ERP payments to 2023. We go over the reason why.
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IRS Removes Penalties on 2021 and 2022 RMDs
The IRS just released guidance for taxpayers who did not take certain required minimum distribution on inherited retirement accounts.
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Don’t Forget About Retirement Planning
What do you plan to live on after retirement? Consider whether your existing assets will generate the type and amount of return you’ll need.