Farm Leadership
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IRS Announces April 15 Farmer Deadline
The IRS announced today in Issue Number IR-2013-7 today that due to the extended processing time for many tax forms including form 4562 (Depreciation), that the deadline for any farmer and fisherman has been extended April 15, 2013 from March 1, 2013. To take advantage of the extended due date, the farmer will file out […]
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Senator Grassley Wants Extension of March 1 Filing Deadline
Senator Charles Grassley of Iowa released a letter yesterday to both Timothy Geithner, Secretary of the Treasury and Steven Miller, Acting Commissioner of the IRS urging prompt attention by the IRS to extend the March 1, 2013 filing deadline. As many farmers know, they can file and pay by March 1 without having to make […]
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Good News – Certain Credits Offset AMT
Part of the ongoing Alternative Minimum Tax (AMT) mess over the last several years involved the allowance of certain nonrefundable individual tax credits such as the adoption credit, the child and dependent care credit, the lifetime learning credit and other similar credits to be allowed to reduce AMT. In some years it was allowed whereas in […]
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Section 179 Can Create a Farm Loss (In Certain Cases)
We got the following question from one of our readers: “Is it true you can only deduct Section 179 in the amount of your farm income remaining after other deductions? In other words you can not have a loss because of 179 depreciation? If the Section 179 deduction is more can you carry it over […]
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Don’t Forget The Double Payroll Tax Hit!
Many farmers are aware that the FICA rate for employees (including their employee portion, if self-employed) has gone back to the old 6.2% which is up 2% from the temporary reduced 4.2% rate for 2011 and 2012. This increase applies on wages as paid and will also apply on any self-employment income paid with the […]
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Fiscal Cliff Tax Bill May Increase Divorce Rate!
Congress created laws several years ago to mitigate the effect of married couples paying a higher tax than two single people living together. The extra tax was commonly known as the “marriage penalty”. The Fiscal Cliff Tax Bill passed last week has brought this marriage penalty back into existence and it appears to be even greater than […]
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Up to Ten Capital Gains Tax Rates for 2013!
After reviewing the various phase-outs of itemized deductions and personal exemptions based upon gross income plus the implementation of the new 3.8% investment surtax, for 2013 there now at least 10 different possbile maximum long-term capital gains and qualifying dividends tax rates. The rates range from zero for that portion in the 10-15% tax bracket […]
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Help! What Is My Capital Gains Tax Rate?!
We are continuing to digest the new tax bill (assuming President Obama signs it today). One of the unique features in this tax bill is, that for many taxpayers, they will not accurately know their capital gains (or qualified dividends) tax rate until they prepare their tax return. In brief, we know the following for […]
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Some Major Tax “Goodies” in Senate Bill For Farmers!
The Senate in the early morning hours of January 1, 2013 passed a bill to avert the “Fiscal Cliff”. This bill is now headed to the House and it may be passed, not passed or amended and passed back to the Senate for further agreement. Assuming that the Bill is passed as is, there are […]
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Be Careful Of Fiscal Year Section 179 Issues!
Section 179 and bonus depreciation provisions are based upon a different set of dates for your asset purchases. Bonus depreciation on new equipment is based upon the date that you actually purchase and place in service the asset. For new assets bought between January 1, 2012 and December 31, 2012, you are entitled to use […]