Farm Taxes
-
Large cattle ranchers/dairies may qualify for immediate expensing of cost to raise calves.
When I talk to large ranchers/dairies who are on accrual basis of accounting and do not qualify as a small business, they assume that they are subjected to the UNICAP rules under 263A and needs to capitalize cattle/cows and depreciate cattle/cows instead of expensing or treating as inventory. This presumption is partially correct, if the […]
-
Research and Experimental expenditure required capitalization
Prior to 2022, not much thought was given to the treatment of research and experimental (R&E) expenditures under IRC 174 and the companies usually will deduct these costs as incurred. There was an option to capitalize these costs and amortize over 5-year period but none of the clients I had worked for capitalized R&E expenditures […]
-
SECURE ACT 2.0 Changes the Game on Retirement
The SECURE 2.0 was passed as part of the year end spending bill. We review the highlights of the bill.
-
Join us at 2023 Top Producer Summit
Join us at the Top Producer Summit January 23-25, 2023 in Nashville, TN
-
-
Should You Pay a January 15 Estimate?
Farmers have options for a filing date other than March 1. We discuss these and the reason March 1 is becoming a thing of the past.
-
Our Thanks to Paul Neiffer
We thank Paul for his contributions to CLA and the industry and wish him well on his retirement.
-
Related Parties Don’t Count
We respond to a reader about our last post on paying rent to a landlord at year-end when it is a related party.
-
Tax Court Rules Farmer Can Use Old Tractors
A recent Tax Court indicates that farmers can decide to farm how they want to farm without the IRS disallowing those expenses. But it also shows you need good records.
-
Prepaid Farm Expenses Reminder
Most farmers prepay farm inputs at year-end for both business and tax reasons. We need to make sure to do them correctly. We review the rules.