Farm Taxes

  • IRS Issues 5th Update of Extreme Drought Areas for Extended Livestock Replacment Period

    The IRS has released the fifth annual list (published each September) of counties or parishes in which exceptional, extreme, or severe drought has been reported during the preceding 12 months.  This list can be used instead of the U.S. Drought Monitor maps to determine whether an extended replacement period applies for livestock sold because of […]

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  • New Tax Goodies – Updated

    A very observant reader spotted an error in my last post on the new tax goodies.  In the reporting section for real estate rentals, the form 1099 reporting is for services provided to the real estate investor for items such as repairs, accounting, etc.  The payer of the rents was already required to report this […]

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  • New Tax Goodies

    The Small Business Jobs Act of 2010 was just recently passed by both the House and Senate and President Obama will sign it when he gets back from China.  This Act has several tax “goodies” for farmers and it also has some not so good “goodies”.  A recap is as follows: Section 179 Expensing  – […]

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  • Farm Tax Resources

    A reader asked me for any books that I would recommend regarding farm taxes.  As a CPA, there are several courses around the US that I can attend to get my continuing education and these courses do provide workbooks for us as CPAs.  However, they are not designed for reading by a farmer since they […]

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  • Is an Unlimited Estate Tax Exemption for Farm Estates Harmful?

    I came across an article put out by the Center on Budget and Policy Priorities from Washington DC.  The gist of the article was that having an unlimed estate tax exemption for farm estates is unnecessary and likely harmful.  The focus of the article is that this policy would create 3 harmful situations: First, according […]

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  • Hedge is Good – Speculation is Bad

    Many more farmers are using futures contracts to hedge their crops these days than 20 or 30 years ago.  Hedging income and losses are treated as ordinary income or loss as part of the farming operation.  What many farmers do not know is that if they are using futures to speculate in other commodities or […]

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  • Watch for Farm Partnership Tax Penalties

    In the recent Holdner Tax Court case, the IRS was able to make an argument that the farming operations carried on by father and son were in fact a partnership and not two separate farming operations that should be reported on their respective schedule F. In the case, the father and son had operated the […]

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  • What is My Step Up

    In my last post, I gave an update on the current estate tax law and how it my apply to farmers for 2010.  In that post, I referred to the term “Step Up” and I am using this post just to explain what the term Step Up or Step Down means. Up until this year, […]

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  • Estate Tax Update

    I am currently in a financial investment conference in Chicago for a couple of days and during one of the sessions, the current estate tax situation was discussed.  There appears to be at least 6 billionaires that have died this year and under the current law, they will owe no federal estate taxes, however, in most […]

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  • S Corp Versus C Corp Dividends

    In my post about large tax increases coming for dividends, there were several replies on our Agweb.com blog site regarding how this affects S corporation dividends and other related issues. I thought I would use this post to give our farmers a quick update on how income is taxed for C corporations and S corporations. […]

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