COVID-19 regulatory and tax updates
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Advance Payment is Not Extra Money
The American Family Plan increased the Child Tax Credit and the IRS will advance half of it starting in July. However, this not extra money just an advance.
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American Families Plan Farm Example
The USDA issued a press release indicating the American Families Plan for transfer tax at death would only apply to 2% of American Farmers as long as the family continues to farm. They don’t tell you about lost income tax deductions. We go over an example.
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The American Families Plan
President Biden released details on The American Families Plan. We review how it may affect your farm operation.
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Will You Get an Increase in Your PPP Loan Amount?
A bill was introduced yesterday to make it easier for farmers to qualify for an increase in PPP loans including partnerships. We review the major components of the bill.
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File Extension Now to Get Credit for First Quarter Estimate
The IRS continues to dig in on having to pay your first quarter estimated tax payment by April 15. Even an overpayment must meet this requirement. We review new IRS guidance on the issue.
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No Need to File Amended Return for ACA Premium Refund
The IRS announced on Friday you don’t need to file Form 8962 to report any excess ACA premium and do not need to file an amended return to get a refund.
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What’s My Maximum Tax Bracket
We summarize how tax rates will increase if all of the tax proposals get enacted. It is not a pretty picture unless you want to give the government 70% of your income over $400,000.
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Assistance for Health Insurance Costs
The American Rescue Plan provides for substantial health care savings for many farmers for 2020-2022. We review the new rules.
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Will Per Donee Become Per Donor
Many farmers take advantage of the $15,000 per donee annual gift exclusion. This may be changed to a per donor and that will greatly reduce the benefit.
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The STEP Act and What it Might Mean to You
Multiple Senators yesterday proposed a transfer tax on appreciated assets either during lifetime or at death. The details are grim for many farm operations if the Act ever gets into law.