Tag Archive: "tax advantage"
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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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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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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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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 […]