Farm Taxes
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Are You Relying on DPAD Passthrough?
Cooperatives are passing through less DPAD this year to producers. If you use the passthrough as part of your year end strategy, make sure you know what to expect.
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Are You a Farmer?
Many farmers will not qualify as a “farmer” for estimated tax purposes and the possible penalty is much higher than in prior years.
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What Might be in Year-end Tax Package?
There is a very good chance that some tax laws will get passed by the end of the year. We review what they might be.
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Will 100% Bonus Depreciation Get Extended?
100% bonus depreciation will drop to 80% starting January 1, 2023. There is chatter about extending 100% to December 31, 2025.
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K-2/K-3 Guidance Not Quite As Good
Not all farm partnerships will get a blanket exemption from the K-2/K-3 Forms. We explain why.
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Good News on K-2 / K-3 Forms
It appears that most farm partnerships will not need to prepare Form K-2/K-3 for the 2022 income tax return.
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Excess Fertility – Is it Fully Deductible?
Excess fertility on purchased land can be deducted. However, the amount may not agree to what an agronomist might indicate.
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Older Farmers Can Contribute $30,000 to a 401(k) Plan
Farmers can contribute more to retirement plans in 2023 and we go over the details
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Yes, You Really Can’t Defer Your ERP Payment
We continue to have farmers ask why they can’t defer their ERP payments to 2023. We go over the reason why.
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IRS Removes Penalties on 2021 and 2022 RMDs
The IRS just released guidance for taxpayers who did not take certain required minimum distribution on inherited retirement accounts.