Farm Taxes
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Is Low Section 179 Causing Low Equipment Sales?
Most of the equipment manufacturers have released their equipment sales for the last quarter and most of them reported lower sales for the first quarter of this year versus 2013. We have seen some commentators attribute this to the current lower Section 179 tax deductions for this year and no bonus depreciation. However, when you […]
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Washington State Sales and Use Tax Exemption Update
Washington State Sales and Use Tax Exemptions Update For our Washington state readers, effective June 12, 2014, eligible farmers will no longer have to apply to the Department of Revenue and the Department of Revenue will no longer issue exemption certificates for repair parts and services for farm machinery and equipment. Instead, qualifying farmers must […]
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Know Your Deferred Tax Liability!
Over the last couple of months I have seen some farm operations that based upon the fair market value financial statements provided appear to have net worth, however, when you factor in the amount of deferred taxes that would be owed if all of the inventories, equipment and receivables were liquidated, the farming operation would […]
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FBAR Filing Deadline is Near
The Foreign Bank and Financial Accounts Report (FBAR) form, formerly TD 90-22.1 now known as FinCEN Form 114 must be electronically filed by June 30th. As it is not required that this form be filed at the time of filing an individual tax return, this form can be easily overlooked. This form must be filed […]
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Portability Revisited
With the “permanent” changes in the estate tax laws from about 2 years ago, we now have a permanent provision called portability. This allows for the unused portion of someone’s estate to be “ported” over to the surviving spouse to be used on their final estate tax return. Example: John Bean passes away worth $1 […]
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Does Warren Buffett Practice What He Preaches?
President Obama sometimes refers to the Buffett Surtax when promoting a new budget or tax law changes. This surtax refers to the famous Omaha investor (Warren Buffet) who talks about volunteering his willingness to pay a higher income tax rate than the current law provides for. However, much of Warren’s wealth is not current income […]
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State Estate Tax – 2014 Update
Many states have either completely repealed their state estate tax or they have an estate tax that is tied to the old federal state estate tax credit. Since the federal law changed many years back to repeal the state tax credit, all of those states that relied upon receiving the state tax credit amount really […]
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AICPA Ag Conference
I was the chairperson for the 2014 AICPA Ag Conference held in Austin, Texas last week. One of the slogans that we constantly saw walking around Austin was “Keep Austin Weird” and I can tell you there are certainly some “weird” people walking around downtown Austin. We had about 200 people attend the conference and […]
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STAX-Cotton Stacked Income Protection Plan
We have done numerous posts on the new ARC and PLC programs, however, cotton producers are not eligible to participate in either of these programs, so we thought it would be helpful to update cotton producers on the new program available to them. First, 2014 is a transition year for cotton producers. For 2014, they […]
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Payments to Veterinarians Require 1099 (Even If Incorporated)!
Most farmers are used to preparing form 1099s in January of each year for any unincorporated businesses that provide services to them during the year. Once those total payments exceed $600, the farmer is required to issue a form 1099-MISC. If the business providing the services is incorporated, then a form 1099 is normally not […]