November, 2011
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Watch Out For Two Classes of Stock in S Corps!
Many farm operations use an S corporation. These corporations legally are the same as any other regular corporation, however, for income tax purposes, the shareholders have made an election to be taxed similar to a partnership. One of the requirements of an S corporation is that there can only be ONE class of stock. You […]
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Some IRA Guidance
I sometimes find it amazing how much misinformation can be in the mainstream news media on how working Americans can not contribute to an IRA if they are covered by a retirement plan at work. This is simply not true. Any farmer that has earnings in excess of $5,000 ($6,000 if over age 49 and […]
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How The Sale of a Part Interest in a Tractor is Handled?
We had a reader ask the following question: “I am slowly turning my farm operation over to my son. Each year I rent to him more of my farmland and he buys more of my equipment. I purchased a tractor in 2008 for $159,000 on which I took Sect. 179 of $137,000 on it. Can […]
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IRS Relaeases New Inflation Adjusted Tax Related items
Revenue Procedure 2011-52 was recently released. This revenue procedure outlines most if not all of the inflation adjusted tax items such as the personal exemption amount, standard deduction, etc.. Of items of interest to farmers are as follows: For 2012, the 15% tax bracket ends at $70,700 of taxable income for married filing joint, $35,350 […]