February, 2019
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It’s Official – March 1 is Now April 15
The IRS just announced that the March 1 Farmer deadline has been extended to April 15 for all farmers.
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Will March 1 Filing Date Get Extended?
Many farmers try to file by March 1. However, this year, it is highly unlikely that any farmer can truly file an accurate return by this due date. Will the IRS extend the due date to April 15 to give us time to accurately prepare the return.
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Help – Where do I Put all of These Deductions?
Many farmers are unsure where to put the two different DPAD’s that flow through from cooperatives. We explain where they go.
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Is it Net or Gross?
Care must be taken when calculating the 9% of QBI cooperative adjustment when you have other businesses with losses.
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Some Q & A on Section 199A
Readers have sent in several comments. We provide a Q & A format to respond to the questions.
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An Interesting Way to Allocate SE Tax Deduction
If the IRS really means that gross income equals gross receipts, then we will have an “interesting” way of allocating the self-employment and retirement plan contributions.
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The Deductions Aren’t in the Proposed Regulations
The proposed regulations did not address the SE tax deduction, etc. But that does not mean we can ignore the final regulations.
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What About SE Tax Deduction?
When a farmer has multiple businesses or sells to a cooperative in 2018, care must be taken in calculating QBI. We review how to deal with the SE tax deduction.
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Processing and Marketing Cooperatives Provide An Extra Deduction
If a farmer has a net loss for 2018 and sells to a cooperative, it is likely that your QBI loss carryover to 2019 will be reduced. Plus you will continue to get a DPAD that can offset capital gains.
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Be Careful of Processing Cooperatives
For 2018, farmers who sell to a processing cooperative will likely have additional calculations and timing issue.