-
Looks Like $500,000 Section 179 is Now Permanent
Although not passed yet, “The Protecting Americans from Tax Hikes Act of 2015” will likely be passed by Congress in the next day or two and then signed by President Obama. One of the key provisions for farmers is to make Section 179 permanent at the $500,000 level. Once equipment purchases total $2 million, then the […]
-
Iowa Land Values Drop 3.9% from 2014
Iowa State University has performed a survey of Iowa land values since 1941. Nominal land values peaked in 2013 and for 2015, the values decreased by $310 to an average $7,633 per acre or drop of 3.9%. Iowa is split into 9 zones, 3 along the top part of the state, 3 in the middle […]
-
One Year Later
We are hearing from various sources that the tax extender bill will not be done until likely this Saturday which will be December 19. Last year, the bill was signed on December 19, so if Congress passes it on the 19th and heads home, the tax extender bill this year will be even later than […]
-
Inflation-Indexed Child Tax Credit Stymies Extender Bill
The tax extenders bill working its way through Congress continues to be stymied by a fight over indexing the child tax credit to inflation. Republicans in both chambers oppose this, but House Minority Leader Nancy Pelosi (D-CA) is driving this position and does not appear to want to back down. Pelosi believes that the Democrats have […]
-
Additional De-Minimis Election Update
Yesterday, we posted on how making the $2,500 de-minimis election may not make sense in certain cases, especially if the farmer is purchasing many assets costing less than $2,500 that will appreciate in value (such as young breeding stock). We mentioned in the post that the gain was ordinary, but forgot to mention that this gain […]
-
Be Careful with De-minimis Election with Breeding Stock
We mentioned in a previous post that the IRS has updated the de-minimis election to allow farmers and ranchers to deduct all items costing less than $2,500 on their income tax return. This is an annual election and most farmers will make the election. This allows them to deduct all items costing less than $2,500 […]
-
DTN Ag Summit
I will be speaking in two sessions as this year’s DTN Ag Summit. This Sunday, Nick Houle from our Minneapolis office and myself will be speaking on how to reduce the income tax impact from a farmer retiring. Most farmers do a great job of deferring income taxes during their career, however, when it comes time to retire, […]
-
A Slow Slog to the Finish Line on Section 179
As usual, Congress continues to dither on any tax extender bill for 2015. The tax extender bill would likely have Section 179 at $500,000 and 50% bonus depreciation on new purchases. Senator Orrin Hatch (R-UT) has indicated that a one-year extension similar to last year will not work. President Obama and Rep. Nancy Pelosi (D-CA) […]
-
IRS Raises Tangible Property Expensing Threshold to $2,500
Yesterday, in Notice 2015-82, the IRS raised the de minimis safe harbor threshold for deducting certain capital items from $500 to $2,500. This applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as a capital item for businesses without an applicable financial statement (audited financial statement). Keep in mind, […]
-
FAFSA Reporting Changes
I get many phone calls during the year regarding the reporting of income tax data for FAFSA purposes in order for a child to get financial aid. Many times these phones calls lead to heartburn for both the client and myself. The parent wants to get the data into the college as soon as possible to pin […]
