2017 Farm Income Tax Webinar
|
|
- Suzanna Gilmore
- 6 years ago
- Views:
Transcription
1 2017 Farm Income Tax Webinar Charles Brown Field Specialist - Farm Management crbrown@iastate.edu Additional Information Tax Bracket Tables Standard Deduction Social Security Wage Base Deferring Crop Insurance Depreciation Recovery Periods Pension Contribution Limits Tax Calendar W2 & 1099 Filing Dates Chapter 12 Bankruptcy Law Farm Expense Deduction Fence Law Health Insurance Iowa Anti-Corporation Farm Law Machinery Leases and Trades Renting Land to an S Corp Small Partnerships Tax Treatment of Water Quality Projects New Tax Bill Proposal 1
2 New Tax Example-MFJ Family of 4 Husband & Wife and 2 children under 17 years of age Salary of $75,000 Current Proposed Salary $75,000 $75,000 Standard deduction -$12,700 -$24,400 Exemptions -$16,200 $0 Taxable income $46,100 $50,600 Income tax owed $5,983 $6,072 Child tax credit -$2,000 -$3,800 $3,983 $2,272 Tax savings $1,711 S Corp $100,000 profit after paying wages $40,000 wages paid S Corp Example Current Proposed SE Tax Wages $40,000 $40,000 $40,000 Sub S profits $100,000 $100,000 $100,000 Standard deduction -$12,700 -$24,400 $140,000 Exemptions -$16,200 -$1, Sub total $111,100 $114,400 $98,000 SE tax deduction -$4,437 -$40,000 Taxable income $111,100 $109,963 $58, Income tax owed $19,317 $15,790 $8,874 SE tax owed $8,874 Total tax owed $19,317 $24,664 Additional tax owed $5,347 2
3 Business Miles - $.53.5 Charitable Miles - $.14 Iowa - $.39 Medical Miles - $.17 Mileage Deductions Per Mile Section 179 PATH Act indexed expense deduction for inflation & made it permanent. 2017: $510,000 deduction ceiling for cost of qualifying property $2,030,000 threshold (dollar-by-dollar reduction for amount of qualifying property placed in service exceeding $2,030,000) Made Permanent rule allowing revocation of election or specification of property expensed without IRS consent 3
4 Federal Depreciation 2017 Section 179 Expense election New & used equipment Tax years beginning in 2017 Only on cash boot paid 15 yr. property or less Only business assets(>50%), not rental Offsets business income & Section 1231 gain Can t be used on inherited assets or related party assets except between siblings Maximum of $25,000 Section 179 for SUV Definition of an Sport Utility Vehicle (SUV) -An SUV is defined as a four-wheeled vehicle with a gross vehicle weight rating (GVWR) of more than 6,000 pounds but not more than 14,000 pounds. Consequently, in addition to SUVs, an SUV may include heavy pickup trucks, vans, and small buses. However, the term SUV does NOT include any of the following vehicles: -A vehicle designed to have a seating capacity of more than nine persons behind the driver s seat, -A vehicle equipped with a cargo area of at least six feet in interior length which is an open area or is designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment, or -A vehicle with an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver s seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield. 4
5 Federal Depreciation % bonus depreciation Only available on new assets placed in service by 12/31/17 20 yr. life property or less Includes shops, machine sheds, pole barns Available for business and rental assets Cash boot and traded basis qualifies Can depreciate 50% of cash paid plus traded basis in first year Must elect out by class if not used Federal Depreciation % bonus depreciation Not available for business assets purchased from related parties Not available for qualified leasehold assets to related parties if 80% ownership test is met New grain bins or machine sheds leased to a related party would qualify Can create net operating loss (NOL) 5
6 Bonus Depreciation Additional First-year Depreciation (AFYD) Extended through 2019 & modified Bonus Depreciation 280F Passenger Auto $8,000 increase to 1 st year depreciation limit Reduced beginning in 2018: $6,400, 2019: $4,800 Passenger automobiles: Depreciation limit under Sec. 280F(d)(7) is $11,160 for the first year Trucks and Vans: $11,560 for first year 6
7 Section 179 is $25,000 Phaseout starts at $200,000 No bonus depreciation Iowa Depreciation 2017 Various Depreciation Stratagies Federal Macrs Iowa Federal Macrs Iowa Federal Macrs Iowa Federal MSL Iowa Cost & Sec 179 Depreciation & Bonus Depreciation Depreciation Depreciation Depreciation Depreciation Combine $400,000 $400,000 $42,800 $221,400 $42,800 $42,800 $42,800 $28,560 $28,560 7
8 Deferred Payment Contracts Have multiple contracts Cash basis taxpayers can use for tax planning Can elect to pull back a contract into current year Has to be full contract Accrual taxpayers cannot elect to pull back contract Deferring Crop Insurance Proceeds Can only defer income related to yield loss Must normally sell more than 50% of crop the year following harvest Revenue insurance is calculated on both price and yield Must allocate income between yield loss and price 8
9 Crop Insurance Allocation Deferral Table If Harvest Price Is: Lower Than Base Price If Actual Yield Is: Lower Than Guaranteed Yield How much can be deferred? Partial Lower Than Base Price Greater Than Base Price Greater Than Base Price Greater Than Guaranteed Yield Greater Than Guaranteed Yield Lower Than Guaranteed Yield None None-There is no crop insurance claim in this situation All Crop Insurance Example Corn Soybeans Yield loss Spring Price Approved yield (bushels per acre) Corn $ 3.96 Production to count (bushels per acre) (-) Soybeans $ Damage loss (bushels per acre) 15 5 Harvest price (x) $3.49 $9.75 Harvest Price Acres covered by insurance (x) Corn $ 3.49 Revenue loss from damage $5,235 $4,875 Soybeans $ 9.75 Price loss Greater of base price or harvest price $3.96 $10.19 Coverage Level Harvest price (-) $3.49 $9.75 Corn 85% Price loss $0.47 $0.44 Soybeans 85% Production to count (bushels per acre) (x) Acres covered by insurance (x) Guarantee Revenue loss from reduced price (+) $8,225 $2,420 Corn $63,954 Total Revenue Loss $13,460 $7,295 Soybeans $51,969 Insurance proceeds $2,879 $0 Harvest $ Counted % allocable to yield loss corn $5,235 / $13, % Corn $61,075 % allocable to yield loss beans $4,875 / $7, % Soybeans $53,625 Amount eligible for deferment $1,120 $0 9
10 Tax Implications of Leasing Operating Lease Immediate deduction of lease payments What is not an Operating Lease Lease payment is applied to equity position A portion of the lease payment is designated as interest or equivalent of interest Lessee acquires ownership, or title of the equipment upon specified number of lease payments Tax Implications of Leasing What is not an Operating Lease Over a short time the equipment is used, the total amount a lessee pays is an exceedingly large portion of the total sum required to buy the equipment outright Equipment payments exceed the current fair rental value At the time any purchase option may be excerised, the title to the equipment can be acquired for an exceedingly small purchase option price in relation to the actual value of the equipment. 10
11 Tax Implications of Leasing Unanticipated Consequences Operating Lease Equipment traded and trade-in value applied to lease Trade-in value considered same as sold Gain is taxable Trade-in value must be amortized over length of lease No immediate deduction as a lease payment Lease Example with Trade-In Value of trade-in equals $100,000 Original purchase price equaled $200,000 Basis is now $0 5 year lease on new tractor Considered sold for $100,000 Taxable ordinary gain of $100,000 (Not subject to SE tax) Have to amortize the $100,000 over the length of the lease $20,000 lease payment per year 11
12 Soil & Water Conservation Expenses Earthen improvements and land improvements such as building a pond must be added to basis of land Exception - Sec. 175 provides for taxpayers that are in the business of farming to deduct these expenses Deductible soil & water conservation expenses include: Treatment or movement of earth, such as leveling, conditioning, grading, terracing and contour furrowing Construction, control and protection of diversion channels, drainage ditches, irrigation ditches, earthen dams, water courses, outlets and ponds Eradication of brush Planting of windbreaks Soil & Water Conservation Expenses Must conform to an NRCS plan or applicable state or local agency plan The deduction can t exceed 25% of gross farm income Any excess can be carried over to the succeeding tax year Ineligible expenses Improvements to land not previously used in farming Land clearing expenses which prepare land for farming Expenses incurred by cash rent landlords Expenses in connection with draining or filling of wetlands 12
13 Soil & Water Conservation Expenses Expenses claimed on line 12 of Schedule F If taxpayer chooses not to deduct, expenses must be capitalized usually as nondepreciable land costs Recapture of expenses applies if farmland on which the expense has been taken is sold within 10 years of farmland acquisition Recapture is 100% if land is disposed of within 5 years Reduced by 20% for each additional year land is held Recapture is from date of land acquisition not from date of expense 13
14 Program Purpose Created in 2009 to encourage agricultural asset owners to lease to qualifying beginning farmers. Provides asset owner with credit on Iowa income taxes. Beginning Farmer must have low moderate net worth. For 2017 the cap is $645,284. Financial statement required with application. For this Iowa program, the Beginning Farmer must... Have education, training and/or experience for the type of farming required for the lease. Make all operational & managerial decisions Perform labor necessary to fulfill lease conditions. Have access to working capital, farm equipment, machinery and/or livestock to fulfill the lease. Be responsible for all financial expenses necessary to lease and manage the property. 14
15 Basic Provisions: Tax Credit Calculations for 2017 Cash lease 7% Cash/flex lease 7% on base rent amount (but not the bonus) Crop Share 17% of asset owner s share of the crop 1% bonus for military veterans Examples on the website. Example:Calculating Cash Rent Tax Credit for acres cash rented $250 per acre $40,000 gross lease income $40,000 x 7% = $2800 Iowa income tax credit Can be used for flexible & crop-share leases too. 15
16 What about 2018? Changes down the road Iowa Legislature failed to act. Unless 2018 Legislature acts, big program changes. Cash lease credit to 5% Crop Share to 15% of asset owner s share of crop NO 1% bonus for military veterans Custom Farming Contract Tax Credit program created in 2013 will expire in (Taxpayer hiring Beginning Farmer to complete agricultural contract work for production of crops or livestock may qualify for a tax credit of 7% of the custom contract amount (8% for veterans)). For More Information and to Apply: See 3-page application and instructions at: IowaFinanceAuthority.gov For 2017 Crop Year: applications accepted until the limit of $6 million in tax credits is reached or September 1, 2017 (whichever occurs first). Beginning farmer s financial statement Beginning farmer s background letter Fees = start at $300 and depend on the length of the lease 16
17 Thank You! 17
Additional Information
Charles Brown 2015 Farm Income Tax Webinar Field Specialist - Farm Management crbrown@iastate.edu 641-673-5841 515-240-9214 Additional Information Tax Summary Social Security Wage Base Entity Comparison
More information2014 Income Tax Webinar
2014 Income Tax Webinar Charles Brown ISU Farm Management Specialist 515 240 9214 crbrown@iastate.edu Expired Tax Provisions Above the line deduction for certain expenses of school teachers Above the line
More informationInternal Revenue Code Section 179(b)(6) Election to expense certain depreciable business assets
Internal Revenue Code Section 179(b)(6) Election to expense certain depreciable business assets CLICK HERE to return to the home page (a) Treatment as expenses. A taxpayer may elect to treat the cost of
More informationInternal Revenue Code Section 179(e)(2) Election to expense certain depreciable business assets.
Note: This document has been updated to reflect amendments by the TCJA, Pub. L. No. 115-97. CLICK HERE to return to the home page Internal Revenue Code Section 179(e)(2) Election to expense certain depreciable
More informationHIGHLIGHTS OF THE TAX CUTS AND JOBS ACT FOR AGRICULTURAL PRODUCERS
HIGHLIGHTS OF THE TAX CUTS AND JOBS ACT FOR AGRICULTURAL PRODUCERS by Kristine Tidgren I. INTRODUCTION The Tax Cuts and Jobs Act (TCJA) ushered in the most significant changes to our tax code in more than
More information2002 Instructions for Schedule F, Profit or Loss From Farming
2002 Instructions for Schedule F, Profit or Loss From Farming Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040, 1041, 1065, or 1065-B. This activity may subject you
More informationTHE TAX CUTS AND JOBS ACT & AGRICULTURAL PRODUCERS. KRISTINE TIDGREN, Ames, Iowa Center for Agricultural Law & Taxation, Iowa State University
THE TAX CUTS AND JOBS ACT & AGRICULTURAL PRODUCERS KRISTINE TIDGREN, Ames, Iowa Center for Agricultural Law & Taxation, Iowa State University October 2018 0 1 TABLE OF CONTENTS I. INTRODUCTION...3 II.
More informationIncome Tax Management for Farmers in 2011
Income Tax Management for Farmers in 2011 George Patrick Purdue University 765-494-4241 gpatrick@purdue.edu and David Frette, CPA, Washington, IN 812-254-3442 1 Reference Materials Income Tax Management
More information2018 Schedule M1UE, Unreimbursed Employee Business Expenses
2018 Schedule M1UE, Unreimbursed Employee Business Expenses *181641* Before you complete this schedule, read the instructions to see if you are eligible. Your First Name and Initial Last Name Your Social
More informationAGROFORESTRY IN ACTION
AGROFORESTRY IN ACTION AF1004-2007 Tax Considerations for the Establishment of Agroforestry Practices by Larry D. Godsey, Economist, University of Missouri Center for Agroforestry Agroforestry is an integrated
More informationTax-Saving Tips ANNEKEN, HUEY & MOSER, PLLC Last-Minute Section 199A Strategies. Strategy 2: Make Charitable Contributions
ANNEKEN, HUEY & MOSER, PLLC December 2018 2018 Last-Minute Section 199A Strategies If the capital gains are hurting your Section 199A deduction, you have time before the end of the year to harvest capital
More informationInstructions for Form 2106
2013 Instructions for Form 2106 Employee Business Expenses Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted. Future Developments
More informationTax Cuts and Jobs Act of 2017 (TCJA) Key General Business Tax Provisions
Item IRC Expensing and Depreciating Section 179 Limits 179(b) For property service in For property service in The maximum Section 179 deduction and phaseout threshold are increased to $1 million and $2.5
More informationFINAL COPYRIGHT 2015 LGUTEF
BUSINESS ISSUES 6 Issue 1: Net Investment Income Tax and Grouping Considerations........... 177 Issue 2: Sale of Section 1250 Property..... 181 Issue 3: Business Travel Expenses................ 186 Issue
More informationAgricultural and Natural Resource Issues Chapter 9 pp National Income Tax Workbook
Agricultural and Natural Resource Issues Chapter 9 pp. 287-327 2018 National Income Tax Workbook Agricultural and Natural Resources Issues Barry Ward, Davis Marrison, and Chris Bruynis Ag Economy Update
More information10/24/2017. Farm Expenses. 26 CFR Expenses of Farmers. Ordinary and Necessary
Farm Expenses Kristy Maitre Tax Specialist Center for Agricultural Law and Taxation October 24, 2017 26 CFR 1.162 12 Expenses of Farmers Farms engaged in for profit activities A farmer who operates a farm
More informationTAX MANAGEMENT TIPS FOR FARMERS L.R. Borton Michigan State University Tax Planning
1 TAX MANAGEMENT TIPS FOR FARMERS L.R. Borton Michigan State University 2014 - Tax Planning 1. The basic management guideline is to avoid wide fluctuations in taxable income because a relatively uniform
More informationInstructions for Form 2106
2011 Instructions for Form 2106 Employee Business Expenses Department of the Treasury Internal Revenue Service Section references are to the Internal $11,260 ($3,260 if you elect not to necessary expenses
More information2017 Agricultural Tax Issues. Greg Bouchard for The Ohio State University
2017 Agricultural Tax Issues Greg Bouchard for The Ohio State University A. Income and Deductions p. 1 1. Ag. Income and Expenses 2. NOLs 3. Rental Property 4. Demolition of Structures 5. Marijuana and
More informationPresented by: Peggy Hall, Legacy Accounting and Software Training Sponsored by: KCAA (Kitsap Community and Agricultural Alliance) WSU Regional Small
Presented by: Peggy Hall, Legacy Accounting and Software Training Sponsored by: KCAA (Kitsap Community and Agricultural Alliance) WSU Regional Small Farms Program Useful Resources Start Up Decisions/Farm
More informationFarm Taxes. David L. Marrison, Associate Professor
Farm Taxes David L. Marrison, Associate Professor Session Objectives Provide a background on how to manage your farm records for ease in completing Schedule F tax returns. Discuss additional federal tax
More informationAgricultural and Natural Resource Issues Chapter 9 pp National Income Tax Workbook
Agricultural and Natural Resource Issues Chapter 9 pp. 287-327 2018 National Income Tax Workbook Agricultural and Natural Resources Issues Chris Bruynis, David Marrison, and Barry Ward Ag Economy Update
More informationEHTC Tax Adviser TAX AND FINANCIAL STRATEGIES. In this issue: Nine Smart Year-End Tax Planning Strategies for Individuals
EHTC CPAs & Business Consultants 2013 Tax Adviser TAX AND FINANCIAL STRATEGIES In this issue: Nine Smart Year-End Tax Planning Strategies for Individuals How Much Will Social Security Recipients Collect
More informationFarm Financial Management Case: Mayer Farm 2013
Farm Financial Management Case: Mayer Farm 2013 The Mayer Farm Case is provided to you as an alternative to using your own financial data. Using the Mayer Farm Case data you can complete the following
More information2017 TAX CUTS AND JOBS ACT
2017 TAX CUTS AND JOBS ACT The Tax Cuts and Jobs Act was signed by President Trump on December 22, 2017. The Act makes sweeping changes to the U.S. tax code and impacts most taxpayers; especially individuals
More informationIncome and Gift Tax Planning
Buchheit Law, PLC Lindsey Buchheit, Attorney 204 1 st Street, Suite B3 Sergeant Bluff, Iowa 51054 712.823.1024 (Office Phone) 712.823.1025 (Fax) Lindsey@Buchheitlaw.net www.buchheitlaw.net Income and Gift
More information2017 Instructions for Schedule F
Department of the Treasury Internal Revenue Service 2017 Instructions for Schedule F Profit or Loss From Farming Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040, 1040NR,
More informationCalculating Depreciation
Calculating Depreciation Circular 658 Revised by Terry Crawford 1 Cooperative Extension Service College of Agricultural, Consumer and Environmental Sciences Performing the mathematical steps to calculate
More informationFarm/Ranch Accounting and Tax 101
2013 CliftonLarsonAllen LLP 2013 CliftonLarsonAllen LLP Farm/Ranch Accounting and Tax 101 Randy Netek, CPA & Brandt Self, CPA May 2018 CLAconnect.com The Agenda Tax Reform Basics of Accounting Documentation
More informationTax Increase Prevention Act of 2014
2014 Tax Increase Prevention Act of 2014 UPDATED December 24, 2014 www.cordascocpa.com TAX INCREASE PREVENTION ACT OF 2014 INTRODUCTION Waiting until the last minute, Congress passed the Tax Increase Prevention
More informationTax Planning. and. Management Considerations. for Farmers in George F. Patrick Extension Agricultural Economist Purdue University
DRAFT 11/15/00 Tax Planning and Management Considerations for Farmers in 2000 by George F. Patrick Extension Agricultural Economist Purdue University Cooperative Extension Service Paper No. CES- December
More informationIncome and Gift Tax Planning
Buchheit Law, PLC Lindsey Buchheit, Attorney 633 1 st Street Sergeant Bluff, Iowa 51054 712.823.1024 (Office Phone) 712.823.1025 (Fax) Lindsey@Buchheitlaw.net www.buchheitlaw.net Income and Gift Tax Planning
More informationAg Income Tax Update for Farm Families
2006-07 Ag Income Tax Update for Farm Families Prepared by: C. Robert Holcomb, EA, Regional Extension Educator Gary A. Hachfeld, Regional Extension Educators Updated 6/2007 Introduction: For the 2006 and
More informationYear Beginning Basis Depreciation Ending Basis Beginning Basis Depreciation Ending Basis
AAE 0 Problem Set # Due October, 06 Name: ) You had a machine shed built and bought a tractor. The machine shed cost $0,000 and the tractor cost $0,000. For your internal farm accounting purposes, you
More informationAg Income Tax Update for Farm Families
Ag Income Tax Update for Farm Families Prepared by: C. Robert Holcomb, EA, Extension Educator Gary A. Hachfeld, Extension Educator April 2009 Introduction: For tax years 2008 and 2009, there are a number
More informationINCOME TAX MANAGEMENT FOR FARMERS IN 2011
INCOME TAX MANAGEMENT FOR FARMERS IN 2011 George F. Patrick Department of Agricultural Economics Purdue University DRAFT DECEMBER 2011 DRAFT 2011 version has not been peer-reviewed. Comments are welcome.
More informationSELECTED BUSINESS TAX BREAKS MADE PERMANENT
breaks for 2015 and 2016: 1) Deduction (up to $4,000) for Qualified Higher Education Expenses; and 2) Deduction for Mortgage Insurance Premiums as Qualified Residence Interest. In addition, the following
More information10% $0 9,525 10% $0 9,700 12% 9,526 38,700 12% 9,701 39,475 22% 38,701 82,500 22% 39,476 84,200 24% 82, ,500 24% 84, ,725
INDIVIDUAL TAX RATES Status Rate* Bracket Rate* Bracket 10% $0 9,525 10% $0 9,700 12% 9,526 38,700 12% 9,701 39,475 22% 38,701 82,500 22% 39,476 84,200 Single 24% 82,501 157,500 24% 84,201 160,725 32%
More informationBusiness Tax Breaks Retroactively Reinstated and Extended by the 2012 Taxpayer Relief Act
Business Tax Breaks Retroactively Reinstated and Extended by the 2012 Taxpayer Relief Act Page 1 of 13 On January 1, 2013, Congress passed the American Taxpayer Relief Act (2012 Taxpayer Relief Act), which
More informationAGRICULTURAL TAX. i n c o m e t a x e s
AGRICULTURAL TAX ISSUES c r i t i c a l i n f o r m a t i o n t o k n o w f o r 2 0 1 8 i n c o m e t a x e s The difference between death and taxes is death doesn t get worse every time Congress meets.
More informationOTHER TOOLS TO MANAGE TAX LIABILITY
TAX GUIDE FOR OWNERS AND OPERATORS OF SMALL AND MEDIUM SIZE FARMS CHAPTER 7 OTHER TOOLS TO MANAGE TAX LIABILITY SYNPOSIS (click on section title to go directly there) Introduction... 7.2 Farm Income Averaging...
More informationThe Agricultural Extension Service maintains a county farm agent in each of North Carolina s 100 counties and a home agent in 94 counties. They are as
4 meal JAN UARY, 1943 WAR SERIES EXTENSION BULLETIN, \/ HE - FARMER S INCOME TAX 1- NORTH CAROLINA STATE COLLEGE OF AGRICULTURE AND ENGINEERING OF THE UNIVERSITY OF NORTH CAROLINA AND U. 5. DEPARTMENT
More informationChapter 4. Cost Considerations
Chapter 4. Cost Considerations In general, forest-related expenditures may be classified for Federal income tax purposes as one of three types: (1) capital costs, which comprise basis these costs include
More informationFarmer and Farmland Owner Income Tax Webinar. Chris Bruynis, Davis Marrison, and Barry Ward OSU Extension
Farmer and Farmland Owner Income Tax Webinar Chris Bruynis, Davis Marrison, and Barry Ward OSU Extension Chris Bruynis Circular 230 Disclosure The information provided in this presentation is for educational
More informationCHANGES IN TAX LAWS AND SPECIAL TAX ISSUES THAT MAY AFFECT YOU
CHANGES IN TAX LAWS AND SPECIAL TAX ISSUES THAT MAY AFFECT YOU 12/31/17 Recent changes in federal tax laws will impact many federal tax returns prepared in 2018 in one way or another. FILING REQUIRMENTS
More informationYEAR-END INCOME TAX PLANNING FOR CORPORATE AND NON-CORPORATE BUSINESSES
2012 YEAR-END INCOME TAX PLANNING FOR CORPORATE AND NON-CORPORATE BUSINESSES UPDATED November 5, 2012 2012 YEAR-END INCOME TAX PLANNING FOR CORPORATE AND NON-CORPORATE BUSINESSES It s that time of year
More informationInstructions for Form 4562
2017 Instructions for Form 4562 Department of the Treasury Internal Revenue Service Depreciation and Amortization (Including Information on Listed Property) Section references are to the Internal Revenue
More informationDTN University Pass It On! Farm Family Estate and Succession Planning
DTN University Pass It On! Farm Family Estate and Succession Planning Marcia Zarley Taylor, DTN Executive Editor Andy Biebl, CPA, Tax Partner, CliftonLarsonAllen LLC Nick Houle, CPA, Tax Partner, CliftonLarsonAllen
More informationWillie and Annette Jump (Example 3.1)
agreement, check here Part II Explanation of Changes to Income, Deductions, and Credits Enter the line number from the front of the form for each item you are changing and give the reason for each change.
More informationTABLE OF CONTENTS SECTION I FARM PROBLEMS & EXAMPLES. Installment Contracts and Deferred Grain Contracts
TABLE OF CONTENTS SECTION I FARM PROBLEMS & EXAMPLES Page Installment Contracts and Deferred Grain Contracts... 1-2 Example of Reporting an Installment Sale (Example-Forms)... 3-6 Example of Taxpayer s
More informationFarm Tax Update 1/21/2019. Teaching Objectives. Circular 230 Disclosure. Thank You Farmers Tax Guide
Circular 230 Disclosure Farm Tax Update David Marrison, OSU Extension The information provided in this presentation is for educational purposes only. This presentation is designed to provide accurate and
More informationDEPRECIATION AND EXPENSING PROVISIONS IN THE PROTECTING AMERICANS FROM TAX HIKES
Page 1 of 6 DEPRECIATION AND EXPENSING PROVISIONS IN THE PROTECTING AMERICANS FROM TAX HIKES Late on December 18, Congress passed and the President signed into law a bipartisan, bicameral agreement on
More informationDecember 20, 2006 Webinar
December 20, 2006 Webinar Choosing the Right Entity For My Business Mat Sorensen, J.D. 6 Critical Year-End Strategies S. James Park, J.D., LL.M. www.kkolawyers.com 856 South Sage Dr., Suite 2, Cedar City,
More information2017 Tax Reform: How the new law affects business auto purchasers, lessees, and users
2017 Tax Reform: How the new law affects business auto purchasers, lessees, and users The Tax Cuts and Jobs Act has changed the tax rules for many taxpayers and many transactions, including the tax rules
More informationDepreciation i for tax purposes is not the same as depreciation for management decisions or
Depreciation i for tax purposes is not the same as depreciation for management decisions or accounting. Non cash event but still reduces taxable income Flexibility in calculating it Can be used to level
More informationWisconsin Elected Official TAX GUIDE. for the calendar year ending. December 31, A service provided by the
Wisconsin Elected Official TAX GUIDE for the calendar year ending December 31, 2015 A service provided by the Wisconsin Institute of Certified Public Accountants February 2016 Dear Wisconsin Elected Official:
More information2010 NEW TAX LAW LETTER
2010 NEW TAX LAW LETTER Responding to a weak economy and its desire to overhaul the health care system, Congress passed three significant tax bills this year: 1) The Hiring Incentives Act of 2010 (HIRE
More informationTAX REPORTING AND PAYMENT
CHAPTER 13 SYNPOSIS (click on section title to go directly there) Introduction... 13.2 Filing Requirements for Individual Income Tax Returns... 13.2 Filing Threshold... 13.2 Due Dates... 13.3 Penalties...
More informationConservation-Related Payments and Expenditures
August 2012 RTE/2012-36 Conservation-Related Payments and Expenditures George Patrick, Professor Emeritus Department of Agricultural Economics, Purdue University Introduction Concerns about soil erosion,
More informationSection 8 TAX DEPRECIATION OF PASSENGER CARS AND OTHER VEHICLES
Section 8 TAX DEPRECIATION OF PASSENGER CARS AND OTHER VEHICLES Introduction There are special dollar limits on annual depreciation that apply only to a passenger automobile, defined under tax law as any
More informationCASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE
FEFO 11-17 September 27, 2011 CASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE A cash rent with bonus leasing arrangement is a variable cash rent lease that has a base rent and the potential
More informationAgricultural & Natural Resource Issues Chapter 10 pp National Income Tax Workbook
Agricultural & Natural Resources Tax Issues Chris Bruynis David Marrison Barry Ward Associate Professor Associate Professor Assistant Professor bruynis.1@osu.edu marrison.2@osu.edu ward.8@osu.edu 740-702-3200
More information10% $0 9,325 10% $0 9,525 15% 9,326 37,950 12% 9,526 38,700 25% 37,951 91,900 22% 38,701 82,500 28% 91, ,650 24% 82, ,500
INDIVIDUAL TAX RATES Status Rate* Bracket Rate* Bracket 10% $0 9,325 10% $0 9,525 15% 9,326 37,950 12% 9,526 38,700 25% 37,951 91,900 22% 38,701 82,500 Single 28% 91,901 191,650 24% 82,501 157,500 33%
More informationRevenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2011 through 2016, Projected 2017 and 2018
CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Corn, Soybeans, Wheat, and Double-Crop Soybeans, Actual for 2011 through 2016, Projected 2017 and
More informationRevenue and Costs for Illinois Grain Crops, Actual for 2012 through 2017, Projected 2018 and 2019
CROP COSTS Department of Agricultural and Consumer Economics University of Illinois Revenue and Costs for Illinois Grain Crops, Actual for 2012 through 2017, Projected 2018 and 2019 Department of Agricultural
More informationRenewal of Bonus Depreciation & Enhanced Expensing Offers Tax-saving Opportunities
Renewal of Bonus Depreciation & Enhanced Expensing Offers Tax-saving Opportunities The recently enacted "Protecting Americans from Tax Hikes (PATH) Act of 2015" (P.L. 114-113, 12/18/2015) made a number
More informationNet Worth Statement Instructions & Forms Dan Childs NF-AE-01-02
Net Worth Statement Instructions & Forms Dan Childs NF-AE-01-02 NF Net Worth Statement Instructions The Samuel Roberts Noble Foundation Introduction: Good financial management is very important to being
More informationYear End Tax Reporting
Year End Tax Reporting TO: FROM: All Clients Nathan Wechsler & Company Professional Association DATE: December 1, 2017 Another year is coming to an end. We want to take this opportunity to remind you of
More informationCorporate Taxes. Standard Deduction: Estate & Trust Tax Rates
WEALTH ADVISORY OUTSOURCING AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor How Tax Reform Affects
More informationAgribusiness Farm Tax Seminar
Agribusiness Farm Tax Seminar Specialty Estate Tax Seminar for Farm Families Nicholas Houle, CPA, MBT Christopher Hesse, CPA December 17, 2013 CLAconnect.com Disclaimers To ensure compliance imposed by
More informationKansas Farm Bureau Young Farmers and Leaders Conference Manhattan, KS January 26, 2018
Kansas Farm Bureau Young Farmers and Leaders Conference Manhattan, KS January 26, 2018 The TCJA s Impact on Farmers and Ranchers Roger A. McEowen Kansas Farm Bureau Professor of Agricultural Law and Taxation
More informationYour Comprehensive Guide to 2013 Year-End Tax Planning
Your Comprehensive Guide to 2013 Year-End Tax Planning Early in 2013, the 2012 Taxpayer Relief Act was enacted and the Bush-era tax cuts, which were scheduled to sunset at the end of 2012, were permanently
More informationChapter 1 Tax Increase Prevention Act of 2014 (TIPA)
Chapter 1 Tax Increase Prevention Act of 2014 (TIPA) Table of Contents Key Issue 1A: Tax Increase Prevention Act of 2014...Page 1-3 Key Issue 1B: Extended Tax Breaks for Individuals...Page 1-3 Key Issue
More informationTax Season Reference Guide. Tool for preparing 2017 tax returns
Tax Season Reference Guide Tool for preparing tax returns Quick Reference Guide A tool for preparing returns At the close of every year, NATP s Tax Knowledge Center pulls together a list of common facts
More informationWho Blinked? The American Taxpayer Relief Act of Winter 2013 A 45,000 foot view of Recent Tax Law Changes affecting Agriculture
Who Blinked? The American Taxpayer Relief Act of 2012 Winter 2013 A 45,000 foot view of Recent Tax Law Changes affecting Agriculture Federal Income Tax Changes Affecting Agriculture Individual Income Tax
More informationROLAND & DIELEMAN 2018 TAX WORKSHEET
ROLAND & DIELEMAN 2018 TAX WORKSHEET FARM 808 4 TH Ave. Grinnell, IA 50112 (641) 236-6558 126 West 3 rd Street Tama, IA 52339 (641) 484-2970 (Grinnell) (641) 484-5622 (Mon./Sat.) 612 4 th St. Sully, IA
More informationTax Cuts and Jobs Act - Cost Recovery Provisions, Expensing, and Like-kind Exchanges last updated
Tax Cuts and Jobs Act - Cost Recovery Provisions, Expensing, and Like-kind Exchanges last updated 12.27.2017 The Tax Cuts and Jobs Act was signed into law by the President on Friday, December 22, 2017.
More informationWhat Are We Covering Today?
Individual & Business Tax Planning Update November 9, 2011 HMWC CPAs & Business Advisors What Are We Covering Today? 2011 Legislation Update Individuals Business Tax Planning Strategies Individuals Business
More informationSpecialty Estate Tax Seminar for Farm Families Paul Neiffer, CPA CliftonLarsonAllen, LLP
2013 CliftonLarsonAllen LLP 2013 CliftonLarsonAllen LLP CLAconnect.com Specialty Estate Tax Seminar for Farm Families Paul Neiffer, CPA CliftonLarsonAllen, LLP Speaker Introduction Paul Neiffer, Principal,
More informationTRANSFER OF FARM ASSETS
TRANSFER OF FARM ASSETS Issue 1: Buying and Selling Farmland pp. 87-89 Cost Basis Purchase [IRC 1012] Paid in: cash, debt or other Gift [IRC 1015] Generally donor s basis Issue 1: Buying and Selling Farmland
More informationCenter for Agricultural Law & Taxation. Tax Cuts & Jobs Act. Key Provisions Impacting Agricultural Producers and Small Businesses June 12, 2018
Tax Cuts & Jobs Act Key Provisions Impacting Agricultural Producers and Small Businesses June 12, 2018 Contact Information Kristine Tidgren, ktidgren@iastate.edu www.calt.iastate.edu @CALT_IowaState 2
More informationTop Producer Seminar A New Tax Bill: What You Need To Know Now. Paul Neiffer, CPA January 25, 2018 Chicago, Illinois
Top Producer Seminar A New Tax Bill: What You Need To Know Now Paul Neiffer, CPA January 25, 2018 Chicago, Illinois Speaker Introduction Paul Neiffer, Principal, CliftonLarsonAllen Frequent national speaker
More information2016 BUSINESS YEAR-END PLANNING UPDATE
November 2016 AN ALERT FROM SMITH LEONARD PLLC: 2016 BUSINESS YEAR-END PLANNING UPDATE www.smith-leonard.com November 2016 2016 BUSINESS YEAR-END PLANNING UPDATE Year-end planning for businesses is particularly
More informationINCOME TAX MANAGEMENT FOR FARMERS IN 2010
INCOME TAX MANAGEMENT FOR FARMERS IN 2010 George F. Patrick Department of Agricultural Economics Purdue University DRAFT DECEMBER 2010 DRAFT INCOME TAX MANAGEMENT FOR FARMERS IN 2010 Table of Contents
More informationHOW THE TCJA APPLIES TO YOUR FARMING (AND OTHER) BUSINESS LATTAHARRIS, LLP CLIENT SEMINARS JUNE 12-15, 2018
HOW THE TCJA APPLIES TO YOUR FARMING (AND OTHER) BUSINESS LATTAHARRIS, LLP CLIENT SEMINARS JUNE 12-15, 2018 Roger A. McEowen Kansas Farm Bureau Professor of Agricultural Law and Taxation Washburn University
More informationTax Update for 2018 and 2019
Tax Update for 2018 and 2019 Individual Tax Changes Business Tax Changes Depreciation Changes Inflation Adjustments IRS Mileage Rates Affordable Care Act Partnership Audit Rules The following is a summary
More informationTax Considerations of Farm Transfers (Revised 26 February 2009)
Tax Considerations of Farm Transfers (Revised 26 February 2009) Introduction There are alternative methods of transferring farm assets from one generation to the next. The most common methods are by sale,
More informationEconomic Recovery Act of 1981: Income Tax Provisions Affecting Farmers and Ranchers
PNW 218 / January 1982 Economic Recovery Act of 1981: Income Tax Provisions Affecting Farmers and Ranchers This circular provides an overview of the major tax law changes made by the Economic Recovery
More informationTAX ORGANIZER Page 3
TAX ORGANIZER Page Basic Taxpayer Information Taxpayer Spouse Taxpayer Spouse First Name Initial Last Name Social Security No. Check if Date of Occupation Dependent Presidential Birth Disabled Blind of
More informationBusiness Tax. Pass-Through Entities. New 20% Deduction
Business Tax Pass-Through Entities New 20% Deduction For tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026, taxpayers who have domestic qualified business income (QBI) from a partnership,
More informationIllinois Department of Revenue. Leased Motor Vehicle Changes and New Reporting Requirements January 1, 2015
1 Illinois Department of Revenue Leased Motor Vehicle Changes and New Reporting Requirements January 1, 2015 2 Public Act 98-628 amends the Retailers Occupation Tax Act and the Use Tax Act to provide for
More informationSELECTED 2016 TAXATION ISSUES
SELECTED 2016 TAXATION ISSUES FOR IOWA FARMERS By Kristine A. Tidgren i November 2016 It has been estimated that the Internal Revenue Code and its accompanying regulations comprise more than 10 million
More informationImpact of Tax Reform on Farmers. Tax and Accounting Department Fall 2018
Impact of Tax Reform on Farmers Tax and Accounting Department Fall 2018 Agenda Summary of Tax Reform Individual Business Tax Planning with Business Structure Important Items on a Farm Tax Return Disclaimer
More informationQuick Reference Guide
Quick Reference Guide A tool for preparing returns At the close of every year, NATP s Tax Knowledge Center pulls together a list of common facts and figures based on current law that tax professionals
More informationInstructions for Form 4562
2016 Instructions for Form 4562 Depreciation and Amortization (Including Information on Listed Property) Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue
More informationIntegrity Accounting
Integrity Accounting Tax Reform Special Report Updated 8/15/2018 On Friday, December 22, 2017, the "Tax Cuts and Jobs Act" (H.R. 1) was signed into law by President Trump. Almost all of these provisions
More informationAAE 320 Spring 2013 Final Exam Name: 1) (20 pts. total, 2 pts. each) 2) (17 pts. total) 2a) (3 pts.) 2b) (3 pts.)
AAE 320 Spring 2013 Final Exam Name: 1) (20 pts. total, 2 pts. each) True or False? Mark your answer. a) T F Wisconsin s vegetable processing industry (green beans, sweet corn, potatoes) may be important
More informationCattle Enterprise Tax and Financial Management
Cattle Enterprise Tax and Financial Management T. Bryant, CPA 1 1 Senior Tax Partner, Beasley, Bryant & Company, CPA s, P.A. Owner/Operator, Overkill Hill Farms, LLC I. Current tax situation for farmers
More informationTAX UPDATE TAX CUTS & JOBS ACT (2018) Add l Elderly & Blind Joint & Surviving Spouse: $1,300
TAX UPDATE 2019 This table compares the predominate changes made by the Tax Cuts and Jobs Act of 2019 to the tax law as it was during 2017 for individuals and small businesses. Exemptions 2017 TAX CUTS
More informationPearson s Federal Taxation Individuals (2017 edition) Textbook Updates
Pearson s Federal Taxation Individuals (2017 edition) Textbook Updates Several chapters Table of Updates Sorted by Chapter The IRS has issued its annual Revenue Procedure with the inflation-adjusted amounts
More information