November, 2015
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IRS Raises Tangible Property Expensing Threshold to $2,500
Yesterday, in Notice 2015-82, the IRS raised the de minimis safe harbor threshold for deducting certain capital items from $500 to $2,500. This applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as a capital item for businesses without an applicable financial statement (audited financial statement). Keep in mind, […]
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FAFSA Reporting Changes
I get many phone calls during the year regarding the reporting of income tax data for FAFSA purposes in order for a child to get financial aid. Many times these phones calls lead to heartburn for both the client and myself. The parent wants to get the data into the college as soon as possible to pin […]
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What is your Machinery Value Per Acre?
The FarmDoc Daily just posted an article on the average value of farm machinery based upon the size of farm operation in Illinois. As can be expected, as the size of farm increases the total amount invested in farm machinery also increases. However, the reverse is usually true for the amount of investment per acre. […]
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Year-End Tax Planning Webinar
I will be hosting a year-end tax webinar for Clifton Larson Allen next Tuesday, November 24 from noon to 1 pm CST. The topics that will be covered are as follows: Quick Update on ARC-CO Payment Recalculations, Understand Tax Law Changes for 2015 (there were not many), Accomplish Effective Tax Planning with Multiple Entities, Manage […]
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Possible ARC-CO Recalculations
As discussed in our webinars on the farm bill last year and earlier this year, farmers who signed up for ARC-CO (County) would have payments made based upon what county the FSA administered your farm not the county where the farm was located (if different). This could result in differences between payment amounts and the […]
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Trends in Write-Offs of Farm Assets
The Tax Foundation periodically comes out with good information on tax statistics. They recently issued a report on corporate investment in equipment for tax year 2012. My perception has been that most of the equipment purchased during 2012 was new equipment. Based on this report, my perception may be in error (or not). is compared […]
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When Will We Know Section 179 Amount?
We continue to have the question asked about what will Section 179 be for 2015 and when will we know. Currently, a farmer is only allowed to deduct $25,000 under Section 179 and if the farmer spends more than $225,000 on equipment, then they are not allowed to deduct any Section 179. Both the House […]
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Northwest Regional Cooperative Institute Day 1
I (David Enquist) am attending the Northwest Regional Cooperative Institute annual meeting and education seminar today and tomorrow in Spokane, WA. The topic of the event is Cooperatives of the Future: Economics, Scope and Size. Day one focused mainly on Megatrends in Agriculture, Generational Differences in Co-ops and Succession / Talent Management. Dr. David Kohl […]
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Health Co-Ops are NOT Cooperatives
Some of you may have read or heard about some of the struggling government-funded non-profit insurers (created out of the Affordable Care Act) that journalists continue to incorrectly refer to as “co-ops,” short for cooperatives, rather than using the uppercase acronym CO-OP, which stands for Consumer Operated and Oriented Plans. While some of these non-profit […]
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2015 ARC-CO Payment Estimator
Final 2014 crop information has been posted by the FSA and in our previous post we have recapped some of the analysis of that data. In order to calculate estimated 2015 crop ARC-CO payment projections, we need the final yield per acre that was provided. Since we now have that data, we have worked up […]