IRS Announces Various Inflation Adjusted Items
Last night I rode in the combine in Northeastern Iowa from about 7 pm to about 2:30 am. We cut about 10,000 bushels of corn with a John Deere S680 and I must admit there is something therapeutic about seeing corn come into the combine and then get dumped into the grain cart. I look forward to it each fall.
Now for the tax stuff. The IRS has announced over the last few days various items for 2015 that are adjusted for inflation each year. Some of the more important items for farmers are:
- The personal exemption will increase from $3,950 to $4,000,
- The lifetime exemption amount for taxable estates begins at $5,430,000, up from $5.34 million,
- The annual gift amount remains at $14,000,
- Persons contributing to a 401(k) plan can put in $18,000, up from the current $17,500. Additionally, if you are age 50 or older, you can put in an additional $6,000, up from $5,500 for a total of $24,000,
- IRA contributions remain at $5,5oo plus $1,000 for the age 50 and over catch-up contribution.
There are many others, but here is a link to the retirement plan related adjustments. Here is the link to the other inflation related items.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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