September, 2018
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Are You a Tax Shelter?
Most farmers don’t think of themselves as a tax shelter. However, in certain situations, your farm operation may be a tax shelter and this can cost you money.
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Follow Up on Qualified Business Income
We follow up on our previous post about rental income. There still seems to be a lot of confusion on when rental income qualifies for the new Section 199A deduction.
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Remember it is Qualified “Business” Income
We continue to get questions regarding rental income received when the taxpayer is under the threshold. This is not business income unless you meet certain requirements.
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Almonds and Cherries Qualify for Direct Payments
Almond and sweet cherry growers will now qualify for direct payments. However many may not get any payments due to AGI or other limits.
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One Last Chance for Tax Reform Education
Just a reminder I will be teaching an all day class on tax reform this Friday in Minnesota and it is available as a webinar.
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Not All Rental Income In Controlled Group Qualifies as QBI
We answer a reader’s question on cash rent and wind turbine rent qualifying for the Section 199A deduction. The answer is Yes and No.
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Will You Need to Change Year-Ends?
The Section 199A proposed regulations have good and bad news for higher income farmers. We review how it applies if your farm entities have different year-ends.
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What Should Dairy Farmers Do?
Diary farmers will likely lose money this year, but for income tax purposes they will likely have the ability to not lose as much. This is even more important under the new tax law.
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What’s My Coop Deduction?
We continue to get questions on how the Section 199A deduction is calculated when there are cooperative sales involved. This post provides a detailed calculation.