Agribusiness BlogFarm CPA Today

Farm Taxes

  • 2009 Year End Tax Planning

    With the end of 2009 less than three weeks away (where does the time fly), I thought I would post a year-end tax planning update for farmers.  Most of this information applies to non-farmers also, but wanted to give you something to plan for.  Again, make sure to review this with your tax advisor before […]

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  • IRS Cuts Mileage Deduction Rate for 2010

    The IRS just announced the mileage rates to be used for 2010 and most of them are lower than 2009 (even though gas is higher now than last year at the same time) For regular mileage, the reimbursement rate will be 50 cents per mile which is about 9% lower than last year’s rate of […]

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  • Happy Thanksgiving and Update on Kid’s Wages Post

    Some of my fondest memories as a child was going to my grandparent’s house for Thanksgiving.  My mother was the oldest of 12 kids and many times we would have 30 to 40 people at the house.  The best thing was my grandmother’s pumpkin and apple pie.  I know if she was still alive and […]

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  • Paying 4 Kids Equals $8,300 of Tax Savings

    While growing  up on the farm with my brother and sister, we worked in spring and fall planting plus doing the summer harvest.  Most of the time, my parents never did pay a wage to either my brother or I, however, they did purchase a car for us and put us through college.  This means that […]

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  • Fourteen Years to Pay Estate Taxes

    For 2009, a taxpayer can leave an estate of $3,500,000 tax free to his/her heirs.  They can also leave an unlimited amount to their spouse.  With proper planning, this means that most farm families will be able to shelter $7,000,000 or more in farmland values from the estate tax.  A benefit that the IRS provides […]

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  • What About 2010 Roth Conversions

    The ROTH IRA has been around for many years.  For many farmers and others that have income over $100,000 annually, they have either been unable to contribute to a ROTH IRA or convert a regular IRA to a ROTH IRA. Starting in 2010, these rules are changing for ROTH IRA’s.  Here are 6 things that you […]

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  • Extension & Expansion of Homebuyer Credit

     The Senate appears to be moving closer to passing a bill to extend and expand the homeowners credit to purchase a home.  This credit was designed to help stimulate the housing market and I know in our area (which tends to have moderate to lower priced homes) that this credit is probably responsible for most […]

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  • Defer the Crop Insurance Payment – MAYBE!

    Several of my farm clients have called me and asked whether receiving a crop insurance payment this year is taxable in 2009 or 2010.  I commonly tell them the answer is yes.  It may be taxable in 2009 or 2010 depending on what type of crop insurance it is and other matters. In general, if […]

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  • Pay Your Kids – It Pays at Tax Time

    I remember working on our wheat and pea farm for my parents when I was in high school.  During spring, I would help plant the peas.  During harvest, I drove the combine for about 3 to 4 weeks depending on the yields, weather and how much custom cutting we did.  In the fall, I would […]

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  • Don’t Forget the State When it Comes to Estate Taxes

    Currently, for people dying in 2009, you can have a taxable estate of up to $3.5 million and not pay any federal estate taxes.  For 2010, this amount is unlimited, but goes back to $1,000,000 in 2011 and beyond. Congress is working on changing these amounts and my guess is that the current $3.5 million amount […]

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