Farm Industry Trends
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What Are Capital Gains
The new Section 199A deduction has final limit of 20% of taxable income minus net capital gains. What is net capital gains? We go over the detail
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Good News for Feedlots
In a post from last week we were not sure if a feedlot that did not buy cattle was a farmer. After doing more research, a feedlot is a farmer whether it owns the cattle or not.
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Where is CLA?
CLA is attending several conferences this week. If you get a chance, please stop by and say hi to our staff. Next week, I will be doing a two hour webinar on Section 199A and farmers, plus Chris Hesse and myself will be doing a full 8 hour CPE webinar on the new tax law and farmers. This is our last session of the year dealing directly with farmers and the new tax law.
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Trade-Ins and Self-Employment Tax
Many farmers strive to report a certain amount of self-employment income each year to increase their social security retirement benefits. The new tax law has negatively impacted this strategy if they trade-in farm equipment during the year.
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What I am Thankful For.
Happy Thanksgiving to all of our readers. I just give a few things I am thankful for.
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Rentals – Is it QBI or Not?
We continue to have multiple questions on whether rents rise to the level of being a qualified trade or business. I attempt to answer this based on the case history of rents in the farm area. In many cases, there is still uncertainty.
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The Biggest “We Don’t Know Yet”
There are still several parts of the new tax law that we don’t know answers to. We review some of the key ones.
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Will Pre-2018 NOLs be Allowed in Full?
There is a chance the pre-2018 net operating loss carryovers will be subject to the new excess business loss rules and thus farmers may not be able to fully deduct all of their loss carryovers in 2018 and beyond.
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Grain Contributions May Be Even More Valuable
Gifting grain to a charity can help farmers and the new tax law can make it even better.
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Larger IRA and 401(k) Deductions in 2019
Taxpayers can put more into IRAs or 401(k)s next year.