Farm Taxes
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Are We Getting Section 179 Fatigue?
We should know by Wednesday whether Section 179 will be $500,000 for 2014 (I have guaranteed this at several seminars over the last week or so, but you know how much my guarantee is worth). Assuming it does get increased to that amount for this year, I am starting to wonder if many of our […]
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Senate to Vote on Tax Extenders on Wednesday?
It appears that the Senate will vote on the Tax Extenders Bill on Wednesday of this week. Procedural matters will tie them up on Monday and Tuesday, thus the earliest the vote will take place is on Wednesday. It is expected that enough Democrats will vote with Republicans to pass the Bill and it appears […]
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House Passes HR 5771 Tax Extender Bill
The House of Representatives voted last night to approve a one-year retroactive extension of most the tax extender provisions by a vote of 378-46. The bill now heads to the Senate where indications are it will be approved. Among the tax extenders of particular interest for agribusiness that would be renewed through the end of […]
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Irrigation Systems – Is that 7 or 15 Years?
We got the following question: “Can you blog about how irrigation systems and their components might be expensed or depreciated if purchased in 2014?” Irrigation systems can be depreciated over either a 7 or 15 year period. The key rule regarding whether it is 7 or 15 years is based on whether the system is […]
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Is an One-Year Extension of Section 179 all we get?!
The House has proposed H.R. 5771 – Tax Increase Prevention Act of 2014 to extend all expiring tax provisions for one year through December 31, 2014. This would include keeping Section 179 at $500,000 for 2014 and 50% bonus depreciation through December 31, 2014. It appears that this bill may be an all or nothing […]
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A LLC is a Company not a Corporation
The form 1099 filing season is coming up next month and the IRS just released CCA 201447025 dealing with whether a business needs to issue a 1099 to a LLC. A common misconception that we see very often is the assumption that a limited liability company (LLC) is a corporation. We even see this terminology […]
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$14,000 per Donee, not per Donor!
We received the following question (and many others of a similar nature): “My husband tore out an article you wrote for the Farm Journal advising that it was possible to gift $ 400,000 in value per year. How is this possible when the gift tax exemption is $ 14,000? Assuming husband and wife each gifted […]
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Take Advantage of Low Rates!
The IRS just released their applicable federal rates for December 2014. For loans less than 3 years, the rate is .34%; 3 to 9 years, it is 1.70%; and for over 9 years, it is 2.70%. These very low rates provide a very good opportunity to transfer additional wealth to your children or grandchildren without […]
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Whole Farm Crop Insurance May Be for You
RMA recently released the details on the new Whole-Farm Revenue Protection (WFRP crop insurance program. This insurance replaced the old Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite) programs. This insurance plan is tailored for any farm with up to $8.5 million in insured revenue and includes farms with specialty or organic commodities (both […]
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Another Section 179 Update
It seems that my inbox is blowing up with questions about what Section 179 will be for 2014. Whenever, I indicate that we should know what the final number should be around Christmas or even New Years, I get emails back saying doesn’t Congress know that taxpayers really can’t make informed equipment decisions without knowing […]