Farm Taxes

  • Defer Your Land Sale into 2010 Today

    My partner Scot and I have a 1031 exchange company that handles many tax-deferred exchanges each year.  About this time of year I like to remind our clients that they may be able to sell their land or real estate for cash, yet defer paying the tax on the sale until 2011. Here is how […]

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  • Farm Landlords – What’s my tax rate

    If you are a farm landlord, you can be subject to several income tax rates and rules.  In general, you will either file your income on Schedule E, Schedule F or Form 4835.  Which onewill depend on whether you materially participate in the farm operation – in other words, the extent to which the landlord is […]

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  • In-Kind Wages Can Be Better Than Cash

    One of the great options open to farmers is to pay their employees in-kind wages.  In-kind wages are the payments of the crops that a farmer grows.  For example, a farmer could pay their employees either cash wages of $10,000 or 1,000 bushels of soybeans worth $10,000.  The reason that a farmer would want to […]

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  • Some Income Tax Goodies

    The American Recovery and Reinvestment Act of 2009 delivered several tax goodies for farmers and their families.  Here are some of the highlights: 1.  Higher Education Credits – You can now have a maximum credit of $2,500 for higher education costs and this applies for the first four years of school instead of the old […]

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  • Thoughts on Estate Planning for Farmers

    I think over the next several months major changes will be made to the estate tax laws.  Right now, each individual can have a tax-free estate of $3.5 million.  Next year it is unlimited, however in 2011, it reverts back to $1.0 million.  I think Congress will make changes this year to make the current […]

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  • Estate Tax Law Changes are Coming

    I have been reading several articles lately on the possible estate tax law changes that will be coming.  The Bush changes from about 8 years ago will be changed and soon. Most agree that the estate exemption will most likely be around $3.5 to $5 million and indexed for inflation.  Also, the gift tax exemption […]

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  • Life Insurance Company Stock Sales May Be Tax Free

    The US Court of Federal Claims issued a decision in 2008 indicating proceeds from selling life insurance stock companies that had de-mutualized were in fact tax free.  There have been serveral large life insurance companies such as Metropolitan, Principal, Prudential, etc. that have de-mutualized over the last several years. The IRS had argued that when these […]

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  • Uncle Sam Helps with Home Purchase

    For those who have not owned a personal residence in the last three years, Uncle Sam is wanting to help you buy a new home.  If you purchase a home this year and your income is below certain levels, then Uncle Sam will refund you $8,000 when you file your income tax return. You can […]

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  • Bonus depreciation extended to 2009

    The recent Stimulus Tax Package includes an extension of bonus depreication from 2008 into all of 2009.  This means that for all new equipment (including single purpose ag buildings) qualifies for 50% of the cost being deducted in 2009 with remainder being depreciated over the normal tax life of the equipment. For example, if a […]

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  • A freebie from the IRS

    There was a new law passed last year that allows all taxpayers that use the standard deduction to take an extra deduction of up to $1,000 for real estate taxes paid on a personal residence.  This deduction is in addition to the standard deduction.  This deduction applies to farmers who do not itemize their deductions. […]

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