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Update Your “Farms” by Sepember 26
I previously wrote on this subject recently, but want to reinforce that you need to take action before September 26, 2014 in order to make sure you do not end up losing any PLC/ARC benefits for this year. The election for ARC or PLC is done on a farm-by-farm basis which includes the operator (the […]
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Dairy Margin Protection Program Update
I spent Friday in Denver (I found wearing shorts to Denver this time of year may not be a good idea since it was “cold”) getting training on the new Dairy Margin Protection program. The various state universities involved in the online tools development have done a very good job of providing good information that […]
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Have Funds to Cover Your Check
The US Tax Court released a case yesterday that Joe Kristan from the Tax Update Blog did a great job of recapping so I will not go into too much detail since he covers the facts. However, the key point from this case is as follows: If you issue a bonus check at year-end that the […]
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How Do We Plan For Section 179 in 2014
We have done several posts this year on what Section 179 might be for 2014. Currently, Section 179 is limited to $25,000 and it starts to phase-out once the farmer spends $200,000 on farm equipment and is eliminated once the farmer goes over $225,000. For 2014, there is no bonus depreciation, whereas last year farmers […]
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Will Tax Inversion Debate Yield Permanent Section 179
Congress is currently debating some type of tax inversion bill to make it more expensive to change a company’s tax domicile from the US to overseas. This post will not discuss the merits of those proposals, but just let you know there is some discussion that along with the tax inversion changes that Congress will […]
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If Landlords Can’t Agree, get new FSN by September 26, 2014
One of the requirements of the new farm bill is that all parties involved in each Farm Serial Number (FSN) must agree on whether to elect PLC or ARC. If the parties cannot agree then no 2014 payment is allowed and the farm is automatically enrolled in PLC for 2015 through 2018. If you have […]
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Be Careful What You Wish For
As part of the new farm bill passed earlier this year is a provision that allows farmers to elect to adjust their APH for any years where the county yield (including contiguous counties) is less than 50% of a ten-year average. These rules were supposed to be put in place in time for the 2015 crop year. The USDA […]
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A Deduction of Zero is Still Zero
We had a reader ask the following questions: “We expense all costs to raise the cattle: vet, supplies, etc. We grow our own feed and expense those costs: seed, fertilizer, etc. We have our farm set up as a LLC. Can we deduct a loss for calf deaths?” Ranchers who raise their own stock, such […]
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Partner Must Have Basis to Deduct Loss
In an US Tax Court case that was released yesterday, partners were found not to have tax basis in promissory notes that they “contributed” to the partnership. Farmers will create partnerships to run their operation and since farm tax law allows farm businesses to usually generate a small profit or even a loss; partners must […]
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Livestock Producers Urged to Enroll in Disaster Assistance Program by Oct. 1
The USDA is encouraging livestock producers who have suffered grazing losses due to drought or fire between October 1, 2011 and December 31, 2014 to register, request an appointment or begin a Livestock Forage Disaster Program (LFP) application with their county FSA office before October 1, 2014 as the Budget Control Act passed by congress […]
