Tag Archive: "farm tax"
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Inflation Reduction Act of 2022
The Inflation Reduction Act of 2022 is moving forward in Congress. We discuss what the primary impacts to producers.
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Equipment Sale Trap
Selling equipment at retirement can be a complicated process. Many believe that selling the entire line over a term of years is a viable option. It actually is not…but there are other options available.
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It’s Never too Early…For Tax Planning
Tax planning is important and with all the complexities of the current market, it may be of benefit to start early this year.
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Gift of Farm Commodities
We had a reader ask the following question as a follow up to our post of gifts: “Please touch on one more aspect of gifting. Gifting grain and the tax owed by the recipient. Thanks, I enjoy your emails.” Cash method farmers have had many situations where the gifts of farm commodities to family members […]
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How Does Section 1231 Work?
We had a reader ask the following question: “I’m thinking about selling a tract of timber on land that was gifted to me 7 years ago. What can I expect the tax consequences to be? I’m a self-employed farmer.” We have done a couple of posts lately on capital gains treatment of the sale of […]
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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 […]
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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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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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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 […]