Farm Tax Webinar – February 7

Just a reminder that CLA will be putting on a tax bill update webinar on February 7.  Although we likely will not have final clarity on Section 199A and the cooperative deduction, there are several provisions with impacts to farmers and we will cover all of those plus discuss some of the strategies that makes the most sense under the new tax bill.

Here is a link to register for the webinar.

 

  • Principal
  • CliftonLarsonAllen
  • Walla Walla, Washington
  • 509-823-2920

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.

Comments

For equipment trades after 9/27/17 and prior to 1/1/18, is the carryover basis from the asset given up eligible for 100% bonus depreciation? Assuming yes, is something to keep in mind when preparing 2017 returns.

The carryover basis is available for 100% bonus if the new asset is acquired after September 27.

I use H@R Block to do taxes ,However I still Pay each yr. I can use some advise on Farm Accounting . I have forty acres and 17 angus cattle. And I contract out most of the work./it would be nice to have a fram accounting CPA

how is the changes to 1031 law appear to effect on farm machinery trade .
is not machinery trade deemed a like kind exchange and therefore depreciation recapture may have to be recognized
at time of trade?

Depreciation recapture will apply, however, until 2023, the farmer can write-off 100% of the new purchase. For example, if you trade a combine with a value of $200,000 for one worth $500,000, you will be treated as if you sold the old combine for $200,000, but the new combine cost will be $500,000 and you can write-off 100% of this cost.

However, you need to watch out for state income taxes on this. They may treat it as a sale with limited deductions on the new cost.