More about Paul Neiffer
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
Blog Posts by Paul Neiffer:
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What Are W2 Wages for DPAD?
One of the bigger deductions that farmers qualify for is the Domestic Production Activities Deduction (DPAD). In brief, the farmer is allowed to deduct 9% of their net farm income (in some cases this may be very limited if all of the farm products are sold through a cooperative). This 9% deduction has a limit […]
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IRS Announces They Are Processing All Remaining Tax Forms
The IRS announced today that they are now accepting all 2012 related tax forms. Since it seems like we have had 100s of tax returns backing up in our office waiting for this announcement, this is welcome relief for CPAs and other tax preparers. One of the negatives we are now certain to get multiple […]
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When an UPREIT Might Make Sense
Many farmers have seen substantial appreciation in their farmland values over the last decade. Many of these farmers are approaching retirement age and would like to “cash” in on these values and diversify their holdings. They do not have any children to take over the farm and are worried that values in their immediate area […]
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Farmers Should Be Able to File Tax Returns by Monday
The IRS announced today that most if not all of the forms waiting to be released should be final and ready for processing by Monday. Some software providers may be ready a few hours earlier, but we are guessing that all should be ready on Monday. If you file on or after Monday, you are not required […]
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How Step-Up In Basis Works
We received this question from one of our readers yesterday: “With my husband passing away in October 2012, I have sold the cattle & much of the farm equipment. Now wondering how all will fall out as relates to depreciation. Obviously, the sale price was less than when purchased new. Ex: Used 90 Dump Truck […]
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Must Have W2 Wages to Deduct DPAD
We got this question from a reader today: “Can the amount I contribute to my solo 401k as deferred compensation be used as wages when figuring the domestic production activities deduction? I have no other wages.” Several years ago Congress placed into law a Domestic Production Activities Deduction (DPAD) that was primarily in response to […]
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Safe to File After March 1
Although we posted on this subject already, we have received multiple questions from readers and other CPAs regarding filing after March 1. As of the time of this post, there are most likely at least two major forms that the IRS has not yet released that will directly affect most if not all of our […]
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Good News for Blackberry, Raspberry and Papaya Farmers
For farmers who raise certain crops with a longer pre-productive life (over two years) such as apples, oranges, and other similar plants, one of the tax rules under Section 263A require all of the costs associated with planting and growing this crop until it reaches economic production to be capitalized and then depreciated over ten years. […]
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Irrigated Cropland Values Up Sharply Due to Drought
The Kansas City Federal Reserve issued their latest Agricultural Credit Conditions report for the 4th quarter of 2012. Due to the widespread drought in their area, irrigated cropland values saw a 13 percent jump in the 4th quarter alone and up 30% for the year. Cash rental rates for irrigated cropland also surged more than […]
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1031 Tax-Deferred Exchange Does Not Always Defer All Taxes!
With farmland prices at or near an all-time high, many farmers are considering selling their farmland and rolling over the gain into other real estate on a tax-deferred basis using a Section 1031 tax-deferred exchange. Under these rules, the farmer has 45 days from the date of closing (not when you sign the offer) to […]