February, 2016
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Iowa Farmers Have Until April 30 to File Iowa Tax Returns
In the last two weeks we have posted several times on the issues facing Iowa farmers on filing their Iowa income tax returns for this year. There has been a lot of back and forth as to whether Iowa will couple with all of the federal changes (at least for 2015). That issue is not […]
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2015 Estimated ARC-CO Corn and Soybean Payment Amounts
Farm Doc Daily put out by the University of Illinois just posted an article on the estimated 2015 ARC-CO corn and soybean payments. Maps were provided showing an estimate of the payment by county and these maps are based upon the NASS yields that were released last week and using the current MYA price estimates […]
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Iowa DOR Digs In
We have posted a couple of times on the Section 179 coupling issue regarding Iowa Farmers. The Iowa Department of Revenue just issue a notice on their web-site that they will require farmers to file and pay their taxes by March 1 or face penalties and interest (there is no interest if paid by normal […]
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If You Don’t Pay Income Taxes, You Lose the Farm!
Frankie Sanders is a self-employed farmer in Illinois and a “tax defier”. As far as the IRS can tell, Mr. Sanders has never filed an income tax return or paid any taxes. The IRS audited his income for 1991-1997 and Mr. Sanders never cooperated with the IRS. The IRS assessed income tax using an estimate […]
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How Much Will Farmers Pay to Iowa For Low Section 179
We posted last week on Iowa not coupling with the federal government on the permanent increased Section 179 that was included in the tax bill passed in December, 2015. It appears fairly certain that the Iowa Senate will not allow a vote on coupling Section 179 for 2015. We decided to try to get an […]
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IRS Interest Rates Get Even Lower
The Federal Reserve Bank increased interest rates back in December and almost everyone thought interest rates would start to rise. The IRS issues applicable federal rates (AFR) each month that indicates the minimum amount of interest that should be charged on loans and other related transactions. For February, the long-term rate (loans longer than 9 years) […]
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Why Won’t Iowa Couple Section 179?!
Since 2010, Section 179 has been at the $500,000 level for federal income tax purposes. Most states have also allowed Section 179 to be at this same level. However, there are several states such as California that continue to have a much lower allowed Section 179 deduction. As we have discussed in many previous posts, […]
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Top 10 Tax Tips for Farmers (Maybe Not)
Accounting Today is a magazine for CPAs. On their website, they just posted their Top 10 tax tip for farmers. There are some tips here, however, I think the photos are better than the tips. Most of them are fairly simple, but you may pick up something that you did not already know. Our blog […]
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Can You Defer ARC/PLC Payments?
I continue to get questions regarding whether you are allowed to defer 2014 ARC / PLC payments received in 2015 to 2016. The confusion relates to the misconception that these payments qualify as crop insurance proceeds. These payments are agricultural program payments. Crop insurance proceeds related to yield losses are allowed to be deferred one […]
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How to Exit Ag Without Paying a Monster Tax Bill Webinar
I was talking with an older farm yesterday and I asked him when he was thinking about retirement and he said “I wish I had done it a couple of years ago.”. There are many farmers in the same shoes that would like to retire now, but are worried about the large tax bill that […]