December, 2018
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What Patrons Need to Provide Their Tax Preparer
Farmers who deal with cooperatives will need to provide more information this year to their tax professional.
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Crops or Livestock – It Does Not Matter
A reader asks how Section 199A is calculated for livestock producers. The bottom line answer it is the same as any other business.
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Threshold Does Not Matter on Cooperative Payments Before Coop Year-End
We got a comment from yesterday’s post about a farmer being under the threshold and whether the transition rule applies. The bottom line is that it does apply no matter the income level.
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Patrons May Lose Most of 199A for 2018
Farmers who sell to a cooperative during the early part of 2018 will actually have two separate calculations to make and they can substantially reduce your 2018 199A deduction. We go through the steps.
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Tis the Season For Prepayments
Farmers prepay a lot of expenses are year-end. There are special rules for deducting those costs.
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Can We Defer MFP Payments
MFP payments are starting to show up. We get several questions on whether you can defer that income into 2019. The quick answer is no.
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Another Issue with Pub. 225
An alert reader found another issue with Publication 225 regarding Section 179 on trade-ins. We review what it should be.
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Warning – Farmer’s Tax Guide is Misleading
We have found that the new Farmer’s Tax Guide has an error regarding the recovery life of farm equipment and machinery. It should be 5 years only for new equipment and machinery. Used remains at 7 years.
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Likely Only 3 Increases in Reference Price
The new Farm Bill, if passed, has a new calculation of the reference price for PLC payments. We review how it works.
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We Have a Farm Bill (At Least The Text)
We now have a copy of the farm bill. It is likely to pass in the next week or so. This Post provides some highlights of the bill.