Farm Taxes
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How Do Repair Regulations Affect My Farm Operation?
The IRS issued new regulations on how to account for repair and maintenance costs and the required capitalization of fixed assets purchases about a year and half ago and most of the provisions are now effective with tax returns beginning January 1, 2014. I have taught on this subject at several tax CPE classes in […]
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Excessive Claims for Fuel Tax Credits Makes the IRS “Dirty Dozen List”
The IRS just released a bulletin yesterday announcing that filing tax returns claiming excessive amounts of fuel tax credits is now on their “Dirty Dozen” list of tax scams for the 2015 filing season. We find that most farmers purchase fuel that is exempt for state and federal gas taxes for those gallons that are consumed […]
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$500,000 Permanent Section 179 Could be Coming Soon!
The House Ways and Means Committee is expected to vote on seven expired tax provisions on February 4, including making permanent Section 179 expensing at the $500,000 level. The current level for 2015 is $25,000 and for any farmer who spends more than $225,000 on equipment during the year, the amount allowed is zero. Another […]
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IRS Scammers Net $14 Million from 3,000 Victims
The pervasive IRS impersonation phone scam has claimed nearly 3,000 victims who have collectively paid over $14 million, according to a new warning from the Treasury Inspector General for Tax Administration (TIGTA). According to the TIGTA, they have received reports of around 290,000 cases due to this scam from taxpayers since October 2013. In the […]
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2 Senators Work to Eliminate Capital Gains Tax on Chapter 12 Bankruptcies
Senator Grassley (D-Iowa) and Senator Franken (D-Minn) proposed a bill today in the Senate to eliminate capital gains tax that a farmer may owe when selling property after entering a Chapter 12 bankruptcy. Chapter 12 bankruptcy is designed to allow farmers to reorganize their farm operations and keep the farm in the family and operating. […]
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Save the Date
Due to the success of the AICPA Ag Conference in Austin, Texas last May, they have decided to do another Ag Conference this year. Normally, this conference would be on an every-other year cycle, but they have elected to try having a back-to-back conference. This year, the conference will be held at the Hyatt Regency in […]
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Do Farmers Take Advantage of “Trust Fund” Loopholes
President Obama as part of his expected State of the Union address will announce various tax related measures to help the lower and middle class and close certain “trust fund” loopholes. This loophole is primarily the ability to step-up assets to fair market value at death. Current law allows a step-up in value of almost […]
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Early CRP Opt-Out Ends January 30, 2015
The USDA has announced that the deadline for CRP participants to elect out of any current CRP contracts will end January 30, 2015. Under the new Farm Bill, certain CRP participants who met certain requirements were allowed to opt-out of the CRP contract early without penalty. Here is a fact sheet on those conditions. Practices […]
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Is Corn Drifting Away From Any 2014 PLC Payment?
As most of our readers are aware, we have posted numerous times on PLC and ARC. For several months the USDA has posted their monthly price for the corn 2014/15 MYA as being under $3.70. If my memory is correct, they got as low as $3.30 and possibly even $3.20 and for at least the […]
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IRS Opens FATCA Data Exchange Service
The Internal Revenue Service has introduced an International Data Exchange Service that financial institutions and tax authorities in other countries will use to report tax information under the Foreign Account Tax Compliance Act, or FATCA. Financial institutions and host country tax authorities will use IDES to securely send their information reports on financial accounts held […]