Farm Taxes

  • 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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  • March 1 is file your taxes time

    Farmers are unique.  The IRS allows them to pay their income taxes later than almost anybody else. Noramally all returns are due on April 15 of each year and taxpayers need to pay in their taxes by either having enough withholding taken out of their wages or paying 4 equal quarterly estimated tax  payments in order to not […]

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  • When Average is Great

    Uncle Sam offers a tax advantage to farmers and fishermen that no other taxpayers receive. When your income is very high compared to previous years, the tax laws allow you to assume that you were able to average all of your farm income over a four year period. This can save you several thousand dollars […]

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