Farm Taxes

  • Dividend Tax Rates are About to Skyrocket

    Congress back in 2001 dropped the maximum tax rate on dividends received by a taxpayer from 39.6% to 15% (plus any applicable state income taxes).  But under the so-called Sunset Rule, these special low rates expire at the end of 2010.  Beginning in 2011, the top rate is expected to go back to 39.6% and […]

    More

  • You Can Use an IRA Too – Maybe!

    My post from yesterday resulted in several comments and questions that I would like to respond to. One comment is that code section 4975 deals with prohibited transactions regarding you and your pension plan or IRA.  There are severe penalties for not obeying the rules regarding these transactions.  However, if you obey the rules, the […]

    More

  • Tap Your 401(k) to Start Your Farm Business

          I know that many of our readers currently have jobs not related to farming, however, you would like to leave that job and start farming on a full-time basis.   One of the major drawbacks to doing this is the lack of capital.  However, many of you could have a substantial asset that […]

    More

  • As Carl Sagen Would Say “Get Ready for Billions of Form 1099s”

    Scott Heintzelman of The Exuberant Accountant has a very good post on the new rules coming for 1099 reporting for all businesses starting in 2012.  In one of my previous posts, I had indicated that these rules were coming, but Scott does a very good job of highlighting the changes. One thing that needs to […]

    More

  • Some S Corporation Dividends May become Subject to SE Taxes

    The American Jobs and Closing Tax Loopholes Act of 2010 is expected to be passed in the next week or so.  In this tax act, there is a provision that states all ordinary income earned by S corporation from professional services (such as accounting, consulting, medical and other related professions) will be subject to self-employment […]

    More

  • Take Advantage of the New HIRE Credit

    Congress recently passed the Hiring Incentives to Restore Employment (HIRE) Act.  This act provided a couple of new credits that in a lot of cases will help our farmers. The first credit is basically a direct reduction in the 6.2% employer FICA cost for new employees hired who have been un-employed after March 18, 2010 and […]

    More

  • State Tax Refunds Can Create 45% Tax Bracket (or Higher)

    On of my favorite business magazines that I started reading as a teenager was Forbes.  This used to be a really great business magazine and it still fairly good, but with all the changes going on with the digital revolution, their web-site seems to be taking a higher priority than their magazine.  However, almost every […]

    More

  • Farmers – New Credit for Health Care Premiums Paid

    Although I am usually on the other side from the IRS, I will admit that their web-site is one of the best sites I have used for accessing tax information.  The recent Health Care Reform law enacted a new employer credit for certain employers who pay for their employee’s health care premiums.  I would estimate […]

    More

  • What’s Your Dividend Tax Rate

    For the last couple of years, farmers and other taxpayers have enjoyed a very low tax rate on dividend income.  This income used to be taxed at regular income tax rates (as high as 50% when combined with some state and city taxes).  However, starting a couple of years ago, the top rate on dividend […]

    More

  • We Don’t Want a Partnership – Part 2

        In my previous post, I discussed a situation that applies to many farmers where there was joint ownership of land and whether a partnership tax return is required to be filed.  In that post, I indicated that in many cases, a partnership tax return is required and if one is not filed, then […]

    More

Subscribe to Our Email List

* indicates required