Agricultural & Natural Resources Tax Issues
|
|
- Sherilyn Terry
- 5 years ago
- Views:
Transcription
1 Agricultural & Natural Resources Tax Issues Chris Bruynis David Marrison Barry Ward Associate Professor Associate Professor Assistant Professor
2 Agricultural and Natural Resource Issues Chapter 11 pp National Income Tax Workbook
3 Ag Economy Update NIB 1. Farm Bill Payments lower in 2017 and will be lower in Farm Economy is still tight. 3. New Farm Bill discussions on horizon. 4. Farm sector watching tax reform carefully- especially step up in basis.
4 Illinois FBFM 2015
5
6
7 11/6/2017 Barry Ward, OSU Extension
8 11/6/2017 Corn Price Last 20 Years Source: macrotrends
9 CORN SELECTED BUDGET STATS Item Input Yield in bushels/acre Receipts Corn Price $3.75 /bushel $ $ ARC/PLC $0.00 $0.00 Variable Costs Seed Cost $280 /bag $ $ Nitrogen (NH 3 ) $450 /ton $56.34 $68.73 P (MAP) $455 /ton $26.89 $32.26 K 2 0 (Potash) $315 /ton $11.77 $14.13 Chemicals $60.42 $60.42 Fuel/Diesel $2.20 /gallon $12.66 $12.66 Breakeven Cost / Bu $2.18 $1.99 Fixed Costs Labor and Management $76.14 $82.37 Machinery Cost $ $ Land Rent $ $ Breakeven Cost / Bu $4.69 $4.37 Returns Return to Total Costs -$ $ Return to Variable Costs $ $ Return to Land $31.48 $ /6/2017 Barry Ward, OSU Extension
10 11/6/2017 Barry Ward, OSU Extension
11 11/6/2017 Barry Ward, OSU Extension
12 CAUV Reform - Ohio House Bill 49 Ohio Biennial Budget Bill Included language to make certain changes to the Current Ag Use Valuation (CAUV) program The Tax Commissioner is required to assume that the holding period for agricultural land is twenty-five years for computing buildup of equity or appreciation with respect to that land. This effectively raises the calculated capitalization rate in the formula which effectively lowers the calculated CAUV value Land enrolled in CRP will be valued at the lowest soil productivity level (recoupment is possible if land is taken out of CRP)
13 CAUV - Ohio House Bill Counties undergoing reappraisal or triennial update in 2017 will see their CAUV values decline by an average of ~31% (taxes due in 2018) This does not necessarily mean that property taxes on these parcels will decline by this amount p.
14 Agricultural and Natural Resource Issues Topics p Agricultural Income & Expenses 2. Net Operating Losses 3. Buying & Selling Farmland 4. Rental Property 5. Demolition of Structures 6. Disposition of Converted Wetlands
15 Agricultural Income & Expenses
16 Why is the definition of who is a farmer so important? p. 394 Exclusion of income from discharge of indebtedness Limit on deducting charitable contribution of a conservation easement Carryback of net operating losses Soil and water conservation expenditures Expenditures for fertilizer, lime, and other materials to enrich, condition, or neutralize soil Domestic production activity deduction Uniform capitalization of reproductive expenses
17 Why is the definition of who is a farmer so important? p. 394 Recordkeeping for business use of vehicles Method of accounting for corporations engaged in farming Cash method of accounting and inventory method Crop insurance or disaster payments Weather-related sales of livestock Deduction of prepaid expenses Application of the at-risk rules
18 Why is the definition of who is a farmer so important? p. 394 Material participation for purposes of the passive loss rules Livestock destroyed by disease Disposition of converted wetlands or highly erodible croplands Imputed interest rules Farm income averaging Self-employment tax on rent
19 Why is the definition of who is a farmer so important? p. 394 Special use valuation of real estate for estate tax purposes FICA taxes on commodity wages FUTA taxes Excise tax on gasoline and diesel fuel used on farms Relief from estimated tax penalties
20 Agricultural Income & Expenses p. 392 Farmers: Individuals, partnerships, corps that cultivate, operate, or manage farm for gain or profit, as owners or tenants Farm: Agricultural, stock, dairy, poultry, fruit, truck farms, plantations, ranches, and all land used for farming
21 Agricultural Income & Expenses Cultivate, Operate, Manage p. 392 Owner/tenant must: Participate to a significant degree in the farming process Bear a substantial risk of loss in the process
22 Custom Planting Not a Farmer p. 392 John Planter: Is engaged in a farming related activity Bears no risk of loss Should use Schedule C If custom work was incidental he would report income on Schedule F
23 Stock Farm Yep She is a Farmer p. 392 Sue Sweeney: Owns building & provides care Gets paid a bonus if meets production goals She materially participates & shares risk
24 Agricultural Income & Expenses For Gain or Profit Is there an actual and honest profit objective Taxpayers engaged in hobby farming are not engaged in the activity for purposes of earning a profit and thus are not farmers for income tax purposes. p. 393
25 Weekend Warrior Not a Farmer p. 393 Austin Mitchell: CPA/attorney inherited farm April-Sept: Up to 40 hours/week on farm Farm fixed up, planted 1,000 trees No budget or plan, no separate acct., no agric. courses/advice $10,000 loss each year..not a farmer
26 Farming is on IRS Radar!
27 Schedule F Compliance Audits pp targeted audits to be conducted for 2015 tax year (note: Hobby Farmers using Schedule F) 4/1/2017 to 4/1/2018 Looking at tax returns with high W-2 income and Schedule F expenses. 6 Items of interest
28 Schedule F Compliance Audits pp Whether deductions are truly ordinary and necessary business expenses deductible under I.R.C Whether farmers are properly distinguishing between custom hire expenses and amounts paid for equipment rental and employee wages 3. Whether gasoline, fuel, and oil expenses are proper business expenses 4. Whether mortgage interest is properly attributable to mortgage interest on real property used in the taxpayer s farming business. 5. Whether repairs and maintenance expenses are for the maintenance of farm buildings, machinery, and equipment that do not add to the property s value or appreciably prolong its life 6. Whether expenses for supplies, including amounts paid for prepaid supplies, are properly documented, and fall within proper prepaid limits are properly documented and fall within proper prepaid limits
29 Farm Income Schedule F p Farm Product Sales Cooperative Distributions Ag Program Payments- ARC/PLC Conservation Reserve Program Payments Commodity Credit Corporation Loans Crop Insurance/Disaster Payments Custom Hire Other Income Disposition of Farm Assets
30 Farm Expenses Schedule F pp Car & truck Conservation Depreciation & cost recovery Fertilizer & lime Interest payments Rent or lease payments Supplies, repairs & maintenance Seeds & plants Taxes Prepaid expenses
31 Net Operating Losses
32 Net Operating Losses - Farming p NOL: Covered in great depth in 2016 NOL: Generally 2 year carryback & 20 forward. Can elect to waive carryback Farming business: Back 5, Forward 20 N/A: Contract harvest g, buying/selling plants/animals grown/raised by others NOL: 3 years for casualty & theft or declared disaster for small business (but not ag). See Example page 411
33 Net Operating Losses Farming Losses 5 Year C/B p. 411 Ex Figure 11.7 NOL ($80,000) Crop Farm: ($70,000) due to flood Trucking: ($30,000) due to flood 5-yr c/b: ($70,000) 3-yr c/b: ($10,000) Could waive 5-yr c/b and revert to 2 yrs. Ex yr: ($10,000) 2-yr: ($70,000) Could elect to forego entire carryback
34 Buying & Selling Farmland
35 Buying/Selling Farmland p. 416 Help your farmers by working with them to keep track of basis in farmland (purchase, gift or inheritance). How well do you think your farm clients are tracking basis?
36 Buying/Selling Farmland Land with CRP Contract p. 418 Does farm ground have CRP Contract? CRP= Conservation Reserve Program
37 Buying/Selling Farmland Land with CRP Contract p. 418 Purchaser can become successor-ininterest if USDA approves If no succession, seller remains responsible under contract May be obligated to pay back $$ May have to pay liquidated damages Seller adds early term. costs to basis
38 Buying/Selling Farmland Land with CRP Contract Beginning 1/9/17, early termination opportunity for certain CRP contracts Waives repayment of all previous payments (and interest) if Land transferred to beginning or socially disadvantaged farmer/rancher
39 Rental Property
40 Cash Rent Lease p. 418 The cash tenant pays the landlord a fixed amount, usually part in advance, for the use of farm real estate and receives all of the resulting production. The tenant pays all costs of production and thus assumes all production risks (drought, insect, hail, etc.) and all price risks. 40
41
42 Indexed Cash Lease NIB A lease that is indexed to a pre-determined parameter Lease amount changes each year based on the parameter change Possible parameters: NASS Ohio Average Cash Rental Rate % Change, AEDE Survey Rental Rate % Change 42
43 Tax Implications - Landlord pp Reported on Schedule E No SE tax as no material participation Not a trade/business so: No Section 179 expense No soil & water conservation expense No farm income averaging No qualification for estimated taxes
44 Tax Implications - Landlord pp Can deduct ordinary and necessary expense (taxes, interest, repairs, insurance, mgmt fees). Subject to passive loss rules < 30% unadjusted basis depreciable, net income not passive (net loss is) See Example 11.19
45 Other Tax Notes- Cash Rent Lease Net Investment Income Tax For higher income earners - cash rental may be subject to 3.8% NIIT Cash Rent Tenant Line 24b Prepaid: Deduct if benefit not > earlier of mos > TP first realizes benefit/rights 2. End of tax year following year of payment p. 420
46 Flexible Cash Leases
47 Flexible Cash Lease Pp A flexible-cash lease will allow landowners to share some of these risks without becoming subject to self-employment taxes. And, like a fixed-cash lease, the tenant doesn't have to keep track of the landowner's share of expenses. Nor does the landowner have to make grain marketing decisions or other management decisions. 47
48 Rental Property - Flex Lease pp Two basic forms: 1. Cash base rent + revenue based bonus 2. Rent solely on % split of revenue Generally paid in cash, not crop share For most, same tax consequences as cash rent lease
49 Crop Share Lease Landlord rents land in exchange for share of crop. Need information on how landowner participates in the farming activity. The share of the crop is determined by each party s contributions to the business. 49
50 50
51 Crop Share Lease - Landlord pp Materially participates: SE Tax Sch F No material participation: No SE F4835 Material participation if (1 or more): 1. a)pay 50% direct costs, b) provide 50% tools, c) advise/consults, or d) inspects (needs do at least 3 of these) 2. Regular decision making affecting success 3. Works 100 hours over 5 weeks or more 4. Materially/significantly involved/production
52 Crop Share Lease - Landlord pp Unlike cash rent landlords, crop share landlords may be eligible for tax provisions that typically apply to only farmers, even if the landlord does not materially participate. Section 179 Soil & Water Expenses Farm Income Averaging Estimated Tax Payments Passive Loss Rules
53 Rental Property - Leasing Personal Property p. 423 Self-Employment Tax (on Sch C) if 1. Not leased with real property and 2. Rental activity is a trade or business Primary purpose is income or profit Tax payer continuously/regularly involved Ex If sporadic, not Trade or Business, other income line 21
54 Rental Property - Leasing Personal Property p. 423 Randy Rogers: Retired and rents all his equipment. Since not leased with real property is likely to be trade or business. Pay SE
55 LLC Rental pp Rental to activity in which TP materially participates: Income not passive, loss is Schedule E, code 7 on line 1b Ex Self-Rental, Material Part. TP Sch F rents land from TP s SMLLC
56 Demolition of Structures
57 Demolition of Structures I.R.C. 280B pp No deduction allowed for cost of demolishing buildings no deductible loss Costs and losses added to land basis If purchases, uses & depreciates, then demolishes, remaining basis into land
58 Demolition of Structures p. 426 Polly Ester (Example 11.26) Purchased land & tears down buildings. Has to allocate $5,000 to basis. Does this happen? Chip Monk: (Example 11.27) Purchased land and uses tool shed. Depreciates shed for a few years. When demolishes, puts adjusted basis and demo cost to basis
59 Demolition of Structures pp Chapter also provides additional demolition examples: Safe harbor for structural modifications (75% rule) Removal of material during repair. Abandoned property Demolition after abandonment Soil & water expenses
60 Disposition of Converted Wetlands
61 Disposition of Converted Wetlands Wetlands mitigation: Restore, create, or enhance wetlands in one place to compensate for impact to other wetlands p. 430 Credits granted Requires replacement of all lost wetlands functions, values, acres Ownership retained while easement protects the wetlands
62 Disposition of Converted Wetlands p. 430 Landowner to impact a wetland purchases offsetting wetland credits Wetland mitigation banks in 10 states One acre restored = one credit For each acre converted to nonwetland, landowner must purchase one credit Credits traded on open market
63 Disposition/Converted Wetlands 1257 p. 431 Disposition of converted wetlands or highly erodible cropland Gain: Ordinary (F4797) Loss: Long-term capital loss (F8949) Expenses to drain/fill wetlands or prepare for center pivot irrigation systems is added to basis of land
64 Disposition/Converted Wetlands Converted Wetlands Converted wetlands means any converted wetland: Held by the person whose activities resulted in such conversion p. 431 Held by any other person who at any time used such land for farming
65 Disposition/Converted Wetlands Converted Wetlands pp Ex Sell 10 $15,000/acre Basis $1,800/acre Investors buying for development 1 acre is wetlands buys credit $11,000 Tile and drain the acre - $2,000 Figure 11.12: Form acres - Part I, wetland acre - Part II
66 Disposition/Converted Wetlands Converted Wetlands pp Ex Sell 10 $11,500/acre Figure Form 4797, Part I 9 Acres Gain of $87,300 Figure 11.14: Form wetland acre - Loss of $3,300
67 Questions?
Agricultural and Natural Resource Issues Chapter 11 pp National Income Tax Workbook
Agricultural and Natural Resource Issues Chapter 11 pp. 391-433 2017 National Income Tax Workbook Tax Legislation NIB 1. Cash Accounting 2. SE Tax on Rental Income 3. DPAD Eliminated? 4. Step-up in basis
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 information2016 Farm Income Tax Webinar
2016 Farm Income Tax Webinar Charles Brown Field Specialist - Farm Management crbrown@iastate.edu 641-673-5841 515-240-9214 Additional Information Tax Bracket Tables Social Security Wage Base Entity Comparison
More informationDale Lattz Farmdoc Research Associate at the University of Illinois College of ACES
Dale Lattz Farmdoc Research Associate at the University of Illinois College of ACES Outlook for Illinois Land Prices and Cash Rents Evolving Dynamics Dale Lattz University of Illinois dlattz@illinois.edu
More informationSeptember 13, Steven D. Johnson
September 13, 2018 Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790 sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management Learning Objectives Highlight Tiling Costs
More informationEconomics of Leasing. Introduction
Economics of Leasing Introduction Lease or Buy: The average annual per acre rental rate in Virginia for the period of 2002-2013 is been $43 for cropland and $19 for pastureland (NASS, Quick Stats). Over
More informationAn Accounting Tradeoff Between WRP and Government Payments. Authors Gregory Ibendahl Mississippi State University
An Accounting Tradeoff Between WRP and Government Payments Authors Gregory Ibendahl Mississippi State University ibendahl@agecon.msstate.edu Selected Paper prepared for presentation at the Southern Agricultural
More informationFarmland Leasing Update. Mykel Taylor Kansas State University January 9, 2017
Farmland Leasing Update Mykel Taylor Kansas State University January 9, 2017 Returns over Total Costs ($/ac) Net Farm and Ranch Income $230,000 $180,000 Net Income Per Operator Dryland Crop Cowherd $130,000
More informationFACT SHEET. Depreciation of Farm Drainage Tile. Agriculture and Natural Resources OAM-1-12
FACT SHEET Agriculture and Natural Resources OAM-1-12 Depreciation of Farm Drainage Tile Wm. Bruce Clevenger OSU Extension Educator and Assistant Professor Introduction Agriculture is one of Ohio s largest
More informationAccess to Land: Economics of Leasing. Gordon Groover Ag and Applied Economics Department Virginia Tech
Access to Land: Economics of Leasing Gordon Groover Ag and Applied Economics Department Virginia Tech groover@vt.edu 540-552-6185 President Harry Truman wanted one-handed economists because every one that
More informationTerry E. Poole Principal Agent Emeritus University of Maryland Extension
Terry E. Poole Principal Agent Emeritus University of Maryland Extension What is a lease? Simply put, it s a contract by which one party (the landowner/landlord) gives another party (the tenant) the use
More informationAgricultural Leasing in Maryland
Agricultural Leasing in Maryland By: Paul Goeringer, Research Associate, Center for Agricultural and Natural Resource Policy Note: This publication is intended to provide general information about legal
More informationREPORT. Research. Determining a Fair Rental Arrangement. Introduction. Types of Rental Arrangements. Kenneth W.. Paxton and Michael E.
REPORT Research Number 110 - Summer 2001 Determining a Fair Rental Arrangement Kenneth W.. Paxton and Michael E. Salassi Introduction Most of the crop agriculture in Louisiana is produced on rented land.
More information2015 JOURNAL OF ASFMRA
ABSTRACT Many people are given farmland and this phenomenon will continue. People who receive the gift of farmland may want to retain ownership for a variety of reasons: the land is already paid for; it
More informationSo You ve Inherited a Farm, Now What?
So You ve Inherited a Farm, Now What? Allan Vyhnalek Farm Succession & Transition Email: avyhnalek@unl.edu Phone: (402) 472-1771 Co Author: Jim Jansen Agricultural Economist Email: jjansen4@unl.edu Phone:
More informationLand Rental Arrangements
Page 1 Land Rental Arrangements (Revised January 2018) Foreword This publication outlines some of the legal and tax considerations of leasing privately owned land. It should not be considered as either
More informationChapter 4 Deduction v. Capitalization. Final & Prop. Regs.
Chapter 4 Deduction v. Capitalization Final & Prop. Regs. 1 IRC sec. 263(a) Reg. sec. 1.263(a)-1 Capital expenditures; in general. Reg. sec. 1.263(a)-2 Amounts paid to acquire or produce tangible property.
More informationFrequently Asked Questions on Sustainable & Long-Term Leases in Minnesota
WE HAVE MOVED: 6 West Fifth Street Suite 650 Saint Paul, Minnesota 55102-1404 Phone: 651 223.5400 Fax: 651 223.5335 Internet: lawyers@flaginc.org Web site: www.flaginc.org Frequently Asked Questions on
More informationLOUISIANA FARM INVENTORY BOOK
LOUISIANA FARM INVENTORY BOOK Name Address Year THE FARM INVENTORY BOOK THE INVENTORY The inventory of farm assets is an important part of the farm record system. The inventory lists all of the assets
More informationToday I will discuss operating and financial leases and show an example that compares leasing versus purchasing a small tractor.
Today I will discuss operating and financial leases and show an example that compares leasing versus purchasing a small tractor. 1 An operating lease offers an alternative for acquiring the use of machinery
More informationSpring Educational Seminar
Spring Educational Seminar Iowa Chapter REALTORS Land Institute Land Trends & Values Press Release RLI Land Trends and Values Committee Chairperson Kyle J. Hansen, ALC Hertz Real Estate Services, Nevada,
More informationRon Shultz, Director of Policy Washington State Conservation Commission
Ron Shultz, Director of Policy Washington State Conservation Commission Finding Farmland Various ways to get into farming and onto the land: Lease Rent Purchase Succession planning Trust Wills Forms of
More informationFinancing a farm can be a challenge. It is one thing to dream of farming, quite another to make it a reality. It is important to be realistic in
Financing a farm can be a challenge. It is one thing to dream of farming, quite another to make it a reality. It is important to be realistic in thinking about farm investments. In this segment, we ll
More informationFlexible Farm Lease Agreements
Flexible Farm Lease Agreements Ag Decision Maker File C2-21 Fluctuating markets and uncertain yields make it difficult to arrive at a fair cash rental rate in advance of each crop year. Some owners and
More informationSo You ve Inherited a Farm, Now What?
Allan Vyhnalek Extension Educator, Farm Succession & Transition Email: avyhnalek@unl.edu Phone: (402) 472-1771 Credit to: Jim Jansen Agricultural Economist, UNL Land Survey Email: jjansen4@unl.edu Phone:
More informationCalculating Crop Share, Cash and Flexible Cash Lease Rates
ase nt Calculating Crop Share, Cash and Flexible Cash Lease Rates By Duane Griffith Montana State University Bozeman January 1998 Instructions for the Crop Leasing program. This program requires Excel
More informationTaxes and Land Preservation Computing the Capital Gains Tax
Fact Sheet 780 Taxes and Land Preservation Computing the Capital Gains Tax Many farmers have their wealth tied up in their land and would like to convert some of this land value into cash. Others want
More informationFinal Repair Regulations and the Impact on Owners of Investment Real Estate
Tom Scarpello Managing Partner 877.410.5040 Final Repair Regulations and the Impact on Owners of Investment Real Estate On September 13, 2013, the IRS released final regulations providing comprehensive
More informationCONSERVATION EASEMENTS
CONSERVATION EASEMENTS Prepared for the Colorado Cattlemen's Agricultural Land Trust January 2007 By Lawrence R. Kueter, Esq. Isaacson, Rosenbaum, Woods & Levy, P.C. Suite 2200 633 17th Street Denver,
More informationFlexible Lease Arrangements
Trends in Nebraska Farm Real Estate and Flexible Lease Arrangements Jim Jansen Extension Economist jjansen4@unl.edu 402-261-7572 Percent of U.S. farmland rented by County US Farmland, Ownership, and Tenure,
More informationKent/MSU Extension Attn: Stacy Byers 775 Ball Ave NE Grand Rapids, MI Tel: (616)
2017 KENT COUNTY PURCHASE OF DEVELOPMENT RIGHTS (PDR) PROGRAM Kent/MSU Extension Attn: Stacy Byers 775 Ball Ave NE Grand Rapids, MI 49503 Email: stacy@sheridanland.com Tel: (616) 632-7878 FOR OFFICIAL
More informationTopics to be Covered
CONSERVATION EASEMENTS Presented by Claire Fiegener, Greenbelt Land Trust Topics to be Covered What is a conservation easement? What is a land trust and how do they relate to conservation easements? What
More informationMastering Partnership Minimum Gain Chargeback Provisions for the Tax Professional
FOR LIVE PROGRAM ONLY Mastering Partnership Minimum Gain Chargeback Provisions for the Tax Professional THURSDAY, JULY 6, 2017, 1:00-2:50 pm Eastern IMPORTANT INFORMATION FOR THE LIVE PROGRAM This program
More informationConservation Easement Tax Incentives. Mark Megalos Extension Forestry (919)
Conservation Easement Tax Incentives Mark Megalos Extension Forestry (919) 513-1202 CONSERVATION EASEMENTS AND TAX CONSEQUENCES The Farm Bill enhanced deduction to the end of 2009. December 31, 2007- January
More informationProfessional Farm Management. Farmland Sales and Acquisitions. Trusted Appraisals
Professional Farm Management g Farmland Sales and Acquisitions Trusted Appraisals Since we ve started with Hertz, they ve helped us transition the farm from a livestock focus to row crops focus, looking
More informationAgriculture & Business Management Notes...
Agriculture & Business Management Notes... Fixed-Cash Crop Lease Agreements Quick Notes... The tenant produces crops on the land and makes general management decisions as if the land were owned by the
More informationTorch Lake Township Antrim County, Michigan
Torch Lake Township Antrim County, Michigan Farmland and Open Space Development Rights Ordinance Ordinance No. 04-01 Effective September 3, 2004 AN ORDINANCE creating a farmland and open space protection
More informationC O N D E M N AT I O N R O L L O V E R S S T E P - B Y - S T E P
C O N D E M N AT I O N R O L L O V E R S S T E P - B Y - S T E P Darryl P. Jacobs djacobs@ginsbergjacobs.com 312.660.9615 300 South Wacker Drive Suite 2450 Chicago Illinois 60606 Tel 312.660.9611 Fax 312.660.9612
More informationBuilding Wealth With Real Estate
Building Wealth With Real Estate - Broker/Property Manager/Loan Officer Goal of My Presentation- Understand These Topics 2 How To Build Wealth And Retire Sooner Types of Income Income Tax Rates Cash Flow
More informationYou spoke and we listened - 63 meetings/2,346 participants
Farm Leasing Arrangements Tim Eggers Field Agricultural Economist teggers@iastate.edu 712-542-5171 www.extension.iastate.edu/feci You spoke and we listened - 63 meetings/2,346 participants Participants
More informationYou may have to use Form 4562 to figure and report your depreciation. See Which Forms To Use in chapter 3. Also see Publication 946.
1 of 10 11/29/2011 2:27 AM 2. Depreciation of Rental Property Table of Contents The Basics What Rental Property Can Be Depreciated? When Does Depreciation Begin and End? Depreciation Methods Basis of Depreciable
More informationFARM LEASE BID SHEET - CASH RENT
Owner: Des Moines County Conservation c/o Chris Lee, Executive Director 13700 Washington Road West Burlington, IA 52655 (319) 753-8260 Conservation@dmcounty.com Bids Due: FARM LEASE BID SHEET - CASH RENT
More informationThe Food, Conservation, and Energy Act of 2008 modified many aspects of the previous payment limitations provisions enacted in past Farm Bills. Produc
PAYMENT LIMITATIONS, PAYMENT ELIGIBILITY, and AVERAGE ADJUSTED GROSS INCOME PROVISIONS OF THE 2008 FARM BILL Summary of 4-PL FSA Handbook Wes Harris Center for Agribusiness and Economic Development The
More informationQ. How is Agricultural property valued? A. GENERAL INFORMATION Many states have laws regarding the preferential assessment of agricultural land.
Q. How is Agricultural property valued? A. GENERAL INFORMATION Many states have laws regarding the preferential assessment of agricultural land. This means that farm and ranch assessments are usually based
More informationCropland Rental Tool (CROPRENT)
Cropland Rental Tool (CROPRENT) Leah M. Duzy USDA-ARS National Soil Dynamics Laboratory Auburn, AL Agricultural producers are faced with a variety of cropland rental options, such as cash rent, share rent,
More informationAbout Conservation Easements
Section Three: Farm Transfer Tools About Conservation Easements Editor s note: One question that our education collaborative has fielded consistently throughout the years is about conservation easements.
More informationCost Segregation Opportunities
Cost Segregation Opportunities J.D. Lewis Principal November 10, 2015 Elliott Davis Decosimo, LLC Elliott Davis Decosimo, PLLC This material was used by Elliott Davis Decosimo during an oral presentation;
More informationHosted by: Berkeley County and Jefferson Farmland Protection Boards and Land Trust of the Eastern Panhandle February 27, Bowles Rice LLP
Hosted by: Berkeley County and Jefferson Farmland Protection Boards and Land Trust of the Eastern Panhandle February 27, 2016 2016 Bowles Rice LLP Conservation Easements, Taxes, and Estate Planning Presented
More informationA. Owner s Name: Owner s Address: Description of Land as Shown on Property Tax Statement: Location of Property:,
ODA - Ag. Adm. Form 11 Rev. - 12/2006 New Application Renewal Application APPLICATION FOR PLACEMENT OF FARMLAND IN AN AGRICULTURAL DISTRICT (O.R.C. Section 929.02) (See pages 5 & 6 for General Information
More informationAgenda. Lease communications Lease provisions The future of your land?!
Agenda Lease communications Lease provisions The future of your land?! Lease Communications Lease Communications For Ag Land Leasing to be successful, communications is key! This applies to the landlord
More informationANSWERS TO COMMONLY ASKED QUESTIONS ABOUT AGRICULTURAL LAND VALUE IN KANSAS
ANSWERS TO COMMONLY ASKED QUESTIONS ABOUT AGRICULTURAL LAND VALUE IN KANSAS By The Ag Use Section Property Valuation Division (PVD) February 28, 2017 General Questions: Who establishes the appraised value
More informationIowa Midwest USA Operator Landlords 20, % 107, ,044
Who buys and rents Iowa s farmland? Wendong Zhang, Assistant Professor of Economics, Iowa State University, wdzhang@iastate.edu [Prepared for Proceedings of 2015 Integrated Crop Management Conference]
More informationCHAPTER 156: FARMLAND PRESERVATION. General Provisions. Qualifications and Certification of Farmland. Voluntary Agricultural Districts
CHAPTER 156: FARMLAND PRESERVATION Section General Provisions 156.001 Definitions 156.002 Title 156.003 Authority 156.004 Purpose 156.005 Jurisdiction 156.020 Requirements 156.021 Certification Qualifications
More informationWho Buys and Rents Iowa s Farmland
Who Buys and Rents Iowa s Farmland Dr. Wendong Zhang Assistant Professor of Economics and Extension Economist 2015 Integrated Crop Management Conference, Iowa State University, Ames, IA A Quick Introduction:
More informationIndustry Focus: Agriculture ~ James L. Turner
Industry Focus: Agriculture ~ James L. Turner The succession issues for an agribusiness enterprise are not unlike those for other businesses. However, family members will be involved more frequently in
More informationCHAPTER 10 FIXED ASSETS AND INTANGIBLE ASSETS
1. a. Property, plant, and equipment or Fixed assets b. Current assets (merchandise inventory) 2. Real estate acquired as speculation should be listed in the balance sheet under the caption Investments,
More informationDirect government payments are
22 Economic Research Service/USDA Agricultural Outlook/June-July 21 Payments are generally attached to the land, so the rights to receive payments transfer with land ownership. Current landowners capture
More informationOpen Space Taxation Act
Open Space Taxation Act WASHINGTON STATE DEPARTMENT OF REVENUE JUNE 2007 The information and instructions in this brochure are to be used when applying for assessment on the basis of current use under
More informationSTATE TAX COMMISSION QUALIFIED AGRICULTURAL PROPERTY EXEMPTION GUIDELINES
STATE TAX COMMISSION QUALIFIED AGRICULTURAL PROPERTY EXEMPTION GUIDELINES Issued by the State Tax Commission August 2018 Table of Contents What is the Qualified Agricultural Exemption?... 2 How does Property
More informationTimber Income Tax. Harry L. Haney, Jr., Ph.D.
Timber Income Tax Harry L. Haney, Jr., Ph.D. Garland Gray Emeritus Professor of Forestry Virginia Tech and Adjunct Faculty at Department of Forestry and Natural Resources Clemson University Warnell School
More informationDIFFERENCES BETWEEN THE HISTORIC REHABILITATION TAX CREDIT AND THE LOW-INCOME HOUSING TAX CREDIT
DIFFERENCES BETWEEN THE HISTORIC REHABILITATION TAX CREDIT AND THE LOW-INCOME HOUSING TAX CREDIT Andrew S. Potts NIXON PEABODY LLP 401 Ninth Street NW Washington, D.C. 20004 apotts@nixonpeabody.com. 202-585-8337
More informationWho Owns, Rents and Buys Farmland Today. Speaker: Dr. Wendong Zhang, Iowa State University Moderator: Dr. LeeAnn Moss, AcreValue
Who Owns, Rents and Buys Farmland Today Speaker: Dr. Wendong Zhang, Iowa State University Moderator: Dr. LeeAnn Moss, AcreValue Our Speakers Today Featured Guest: Dr. Wendong Zhang, Iowa State University
More informationCapital Acquisitions Tax Manual PART 11. Agricultural Relief
PART 11 Updated June 2015 Agricultural Relief 1. Introduction Agricultural property, such as farmland, has benefitted from tax relief since the introduction of CAT in 1975. The purpose of the relief is
More informationFarmland and Open Space Preservation Purchase of Development Rights Program Frequently Asked Questions
Farmland and Open Space Preservation Purchase of Development Rights Program Frequently Asked Questions Why should a community consider farmland preservation programs? Farmland preservation is important
More informationmmrma BIMONTHLY PUBLICATION OF THE FARM MANAGEMENT STAFF Indiana Land Prices and Cash Rents J. H. Atkinson, Professo; of Agricultural Economics.
.. g - ~- mmrma BIMONTHLY PUBLICATION OF THE FARM MANAGEMENT STAFF - G. A. HARRISON & J. H. ATKINSON, EDITORS August, 1978 AGRICULTURAL ECONOMICS DEPARTMENT. PURDUE UNIVERSITY '- Indiana Land Prices and
More informationReg. Section 1.263(a)-3(h)(5)
CLICK HERE to return to the home page Reg. Section 1.263(a)-3(h)(5) (h)safe harbor for small taxpayers. (1)In general. A qualifying taxpayer (as defined in paragraph (h)(3) of this section) may elect to
More informationImproving Your. Farm Lease Contract File C2-01. Ag Decision Maker. A guide to help you better understand the business of farmland leases
Improving Your Ag Decision Maker Farm Lease Contract File C2-01 A guide to help you better understand the business of farmland leases Importance of Leasing More than half of Iowa s farmland is rented to
More informationContents TABLE OF CONTENTS
Contents CHAPTER 1 Low-Income Housing Tax Credits and Year 15 17 1.01 Introduction 17 1.02 Overview of the LIHTC Program 18 [1] Land Use Restriction Agreement (LURA) 20 [2] Extended-Use Period 21 1.03
More informationPasture Leases. Overview. Overview. Finding and assessing land/tenants. What to include in the lease. Type of leases
Pasture Leases Kate Binzen Fuller, Ph.D Ag Economics Extension Specialist Montana State University Overview Finding and assessing land/tenants What to include in the lease Type of leases Lease rates: Information
More informationMPEEM The New and Improved Residual Technique of Reserve Valuation
MPEEM The New and Improved Residual Technique of Reserve Valuation Prepared by Alan K. Stagg, PG, CMA Stagg Resource Consultants, Inc. Cross Lanes, West Virginia ABSTRACT The residual technique of reserve
More informationIllinois Crop-Share Cash Farm Lease
Illinois Crop-Share Cash Farm Lease To use this lease form: Complete two identical copies one for the Lessor (Landowner) and one for the Lessee (). Cross out any provisions that are not to become a part
More informationThe West Virginia Farmers Cooperative is excited to beginning the second year of
April 23, 2017 WV Farmers Cooperative Inc. 902 29th St. Vienna WV 26105 wvfarmerscoop@gmail.com To Whom It May Concern: The West Virginia Farmers Cooperative is excited to beginning the second year of
More informationLegal Aspects of Farm Leases under Missouri Law
Legal Aspects of Farm Leases under Missouri Law Stephen F. Matthews Professor of Agricultural Law Department of Agricultural Economics University of Missouri 1 Legal Subtleties: Not All Farm Leases Are
More information- Farm Transfers - Real World Examples
- Farm Transfers - Real World Examples Using Agricultural Conservation Easements to Plan for Farm Succession NW MI Horticultural Research Station November 2014 Brian Bourdages Farmland Program Manager
More informationCash Farm Lease. This lease is entered into this day of, 20, between. , landlord, of (address) hereafter known as "the landlord," and, tenant.
Cash Farm Lease This CASH FARM LEASE form can provide the landlord and tenant with a guide for developing an agreement to fit their individual situation. This form is not intended to take the place of
More information1. How does the enhanced easement incentive change the law for conservation donations?
ENHANCED CONSERVATION EASEMENT TAX INCENTIVES (Extended Through 2011) By allowing conservation easement donors to deduct up to 50 percent of their income (100 percent for farmers, ranchers and forest landowners)
More informationThe True Cost of Land:
The True Cost of Land: Land Rental Values in Manitoba............................... Darren Bond, P.Ag. Farm Management Specialist Manitoba Agriculture Our most asked question what is rent in Manitoba??
More informationFinancing the Community Supported Farm
Financing the Community Supported Farm Ways For Farms to Acquire Capital for Land Access and Start-up Ben Waterman UVM Extension New Farmer Project ben.waterman@uvm.edu, (802) 656-9142 Community Capital
More informationAustralia s compilation of Balance sheets
Australia s compilation of Balance sheets Balance Sheets Introduction Produced assets Non-produced assets Financial assets and liabilities Net worth = Total assets liabilities Memorandum items Balance
More informationSAMPLE CROP SHARE LEASE AGREEMENT
SAMPLE CROP SHARE LEASE AGREEMENT I. INTRODUCTION There are three basic leases: a crop share lease, a cash lease or a flexible cash lease. The lease agreement will state the amount of rent payable, the
More informationSales and Other Dispositions of Assets
Department of the Treasury Internal Revenue Service Publication 544 Cat. No. 15074K Sales and Other Dispositions of Assets For use in preparing 2013 Returns Contents Important Reminders... 2 Introduction...
More informationAdministration s Finance Office Approval Date: 4/10/12 Effective Date: 4/10/12 Capital Assets and Property Review Date:
County of Butte Administration s Finance Office Approval Date: 4/10/12 Effective Date: 4/10/12 Capital Assets and Property Review Date: Control County Wide Version: One Last Revision Date: 4/10/12 PURPOSE
More informationNew Tax Law Could Enhance the Attractiveness of Conservation
New Tax Law Could Enhance the Attractiveness of Conservation Easements Farm Business Management Update, February 1998 By Jesse J. Richardson, Jr. of the Department of Agricultural and Applied Economics,
More informationWhat is Fair Market Value in the Timber Industry?
What is Fair Market Value in the Timber Industry? Roger Lord Principal Mason, Bruce & Girard www.masonbruce.com Presented at 2014 OSCPA Forest Products Conference June 27, 2014 Eugene, Oregon Natural Natural
More informationAgricultural. Credit Conditions. Farmland Values and Farm Income Soar. Burgeoning farm profits accelerated District cropland and ranchland value gains
SURVEY of TENTH DISTRICT Agricultural Credit Conditions S4 te hp tqeuma br te er r 22 1 FF ee dd ee rraall RReesseerrvvee BBa annk k o of f KKa an ns sa as s C Ci ti ty y Farmland Values and Farm Income
More informationIllinois Crop-Share Cash Farm Lease
Illinois Crop-Share Cash Farm Lease To use this lease form: Complete two identical copies one for the Lessor (Landowner) and one for the Lessee (Tenant). Cross out any provisions that are not to become
More informationTHE NEW RULES EXPENSE OR CAPITALIZE?
THE NEW RULES EXPENSE OR CAPITALIZE? Tuesday, January 17, 2012 4600 West 77 th Street Suite 350 Minneapolis, MN 55435 Office (952) 831-6300 Toll Free (888) 245-5613 TODAY S OBJECTIVES A 12,000 foot review
More informationFlexible Cash Leasing of Cropland
University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln Faculty Publications: Agricultural Economics Agricultural Economics Department 1-1-2000 Flexible Cash Leasing of Cropland
More informationCHAPTER 352 COUNTY LAND PRESERVATION AND USE COMMISSIONS
CHAPTER 352 COUNTY LAND PRESERVATION AND USE COMMISSIONS Referred to in 6B.3, 15E.111, 159.6, 173.3, 455B.275 Chapter does not invalidate ordinances existing on July 1, 1982, or require adoption of zoning
More informationCROP SHARE LEASE AGREEMENT. THIS AGREEMENT made in duplicate this day of, 20.
CROP SHARE LEASE AGREEMENT THIS AGREEMENT made in duplicate this day of, 20. BETWEEN: (Landlord's name) being the registered owner or purchaser under an Agreement for Sale of the land described in Schedule
More informationBROCHURE # 37 OPEN SPACE
BROCHURE # 37 OPEN SPACE The information and instructions in this publication are to be used when applying for assessment on the basis of current use under the open space laws, chapter 84.34 RCW and chapter
More informationLandowner/Tenant Relations
Landowner/Tenant Relations Tim Lemmons UNL Extension Educator NEREC 402-370-4061 tlemmons2@unl.edu Items to visit about Land Values and Cash Rent trends Lease Communication Lease Provisions Relatives!
More informationSubtitle H Agricultural Conservation Easement Program
1 1 1 1 1 1 0 1 0 1 0 Subtitle H Agricultural Conservation Easement Program SEC.. [1 U.S.C. ] ESTABLISHMENT AND PURPOSES. (a) Establishment. The Secretary shall establish an agricultural conservation easement
More informationFARMLAND AMENITY PROTECTION. A Brief Guide To Conservation Easements
FARMLAND AMENITY PROTECTION A Brief Guide To Conservation Easements The purpose of this guide is to help landowners access their land amenity value and to provide direction to be compensated for this value.
More informationADMINISTRATIVE REPORT A HISTORY OF PRESERVING FARMLAND IN MARATHON COUNTY April Marathon County. Land Conservation & Zoning Committee
ADMINISTRATIVE REPORT A HISTORY OF PRESERVING FARMLAND IN MARATHON COUNTY 1978-2010 April 2011 Marathon County Land Conservation & Zoning Committee 3 Land Conservation & Zoning Committee Committee Members
More information2017 UNION COUNTY TAX ADMINISTRATOR'S OFFICE APPLICATION FOR PRESENT USE VALUE ASSESSMENT
2017 UNION COUNTY TAX ADMINISTRATOR'S OFFICE APPLICATION FOR PRESENT USE VALUE ASSESSMENT P.O. Box 97, Monroe, North Carolina 28111-0097 (704) 283-3746 New Name PARCEL # 123 Main St Monroe, NC 28110 IMPORTANT:
More informationNRCS Conservation Programs
NRCS Conservation Programs 2014 Farm Bill The 2014 Farm Bill streamlines and simplifies NRCS conservation programs and allows better targeting of conservation and priority resource concerns. Among other
More informationRESEARCH BRIEF. Jul. 20, 2012 Volume 1, Issue 12
RESEARCH BRIEF Jul. 2, 212 Volume 1, Issue 12 Do Agricultural Land Preservation Programs Reduce Overall Farmland Loss? When purchase of development rights () programs are in place to prevent farmland from
More informationConservation tax credits. a landowner s guide. conservation resource center Tax Credit Exchange
Conservation tax credits a landowner s guide conservation resource center Tax Credit Exchange The Conservation Resource Center Tax Credit Exchange 820 Pearl Street, Suite F Boulder, CO 80302 ph: 303.544.1044
More informationFoley Estate Farm. 80± Acres, Section 22 Grove Township Humboldt County, Iowa. August 27, 2015, 10:00 AM Humboldt County Fairgrounds Humboldt, Iowa
Foley Estate Farm 80± Acres, Section 22 Grove Township Humboldt County, Iowa August 27, 2015, 10:00 AM Humboldt County Fairgrounds Humboldt, Iowa 1309 1 st Ave South, Suite 5 Fort Dodge, IA 50501-4954
More information