Farm Taxes
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When no Estate Tax is a Bad Thing – Part Two
I received two excellent comments on my post from Monday of this week regarding the cost to some farm families of not having an estate tax for this year. The comments had additional information which is all applicable for this year. The main intent of my post was to let farm families know that without […]
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When No Estate Tax is a Bad Thing
Most farmers are assuming that since there is no estate tax for 2010, that this must be a good thing for all taxpayers. The reality is that many farmers may end up paying more in taxes than under the law in effect for 2009. This is due to the fact that carryover basis will no […]
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Strong Farmland Auction Prices Continue
Mike Walsten from the “Your Precious Land” has posted recently that farmland sold at auctions are still enjoying high prices. Mike also was interviewed on Ag Day last week and one of his interesting comments related to the trend of farmers in the metro Chicago area. When pricing for development land was very high during the mid […]
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Net Operating Loss – Do You Go Back or Go Forward
Many dairy and other farmers will need to make a decision this year that they may not have had to make for several years. I would say almost all dairy farmers for 2009 will have a tax operating loss and it may be substantial. With a net operating loss, the tax laws allow you in […]
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Send in a Paper Tax Return to Get Homebuyer Credit
As a tax preparer, I normally file all of my client tax returns electronically. However, for this tax season, for all of my clients that are claiming the homeowner credit, we will need to send in a paper return to the IRS. Many farmers may qualify, either for the first time credit of $8,000 or […]
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January 15 vs. March 1
Most of the farmers that I deal with from an income tax filing standpoint try to file and pay their income taxes by March 1 of each year. This is primarily due to no estimated taxes needing to be paid during the tax year if the farmer files and pays by March 1. If they […]
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Estate Tax Whiplash!
Thanks to Senate gridlock, taxpayers who are trying to do effective estate tax planning are in for a case of estate tax whiplash over the next few months. The federal estate tax is due to disappear for one year starting in about two weeks, however, it may reappear unexpectedly and retroactively. When the Senate refused […]
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Don’t Forget the Domestic Production Deduction
One of the deductions available to farmers that I see missed on tax returns (and I must admit I have missed it until I review the return) is the deduction for Domestic Production Activities. This can be one of the most complicated tax deductions of all times for larger businesses, but for farmers who follow […]
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House Extends Current Estate Tax Rules to 2010 and Beyond
The House on December 3, 2009 passed the Permanent Estate Tax Relief for Families, Farmers and Small Businesses Bill of 2009. The Act would permanently extend the current exemption of estates of up to $3.5 million for a single taxpayer and $7.0 million for married couples. For estates larger than there amounts, they would be […]
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2009 Year End Tax Planning
With the end of 2009 less than three weeks away (where does the time fly), I thought I would post a year-end tax planning update for farmers. Most of this information applies to non-farmers also, but wanted to give you something to plan for. Again, make sure to review this with your tax advisor before […]