Farm Rental Net Income Qualifying For IRC §199A Deduction
The Tax Cuts and Jobs Act, TCJA, includes a 20% qualified business income (QBI) deduction, which at first glance, seems to be straight forward. However, upon further inspection into the deduction, there are many complexities that enter into computing what the deduction can mean for individual taxpayers. One such complexity is whether farm rental income […]
Agriculture Producers Eligible for Direct Payments Need to Act Now
Earlier this summer, Agriculture Secretary Sonny Perdue announced a $12 billion program to help farmers who are bearing the brunt of unfriendly and illegal tariffs that have been imposed on the United States in the past few months. We recently asked firm partner Mike Regan how agriculture producers can take action to receive aid. Mike […]
Proceeds from an Easement or Right-of-Way
When you hear someone talk about building new pipelines or wind turbines, they often refer to securing an easement or a right-of-way. Farmers and ranchers are increasingly receiving easement, or right-of-way payments for expanded roadways, pipelines, wind turbines, electrical towers and similar permanent improvements that have a permanent impact on the use of their property.
Tax Reform Impact on Iowa Agribusiness
On May 5, 2018 the Iowa Legislature passed S.F. 2417, which provides a substantial change to the tax code of Iowa. The governor signed the billed into law on May 30, 2018. While most provisions to the new tax policy are far off and contingent, it’s important Iowa agricultural producers understand what has changed and how it will impact them. Key provisions impacting the industry include:
199A Grain Glitch Fixed with Passage of Omnibus Bill
Many legislators from agricultural states like Iowa have been fighting to fix an unintended consequence that was written in the 199A tax provision giving farmers a tax incentive to sell their products to cooperatives over other types of businesses, like private elevators.
Live Updates from National Council of Farmer Cooperatives Annual Meeting in New Orleans
BerganKDV partner and agriculture industry expert Mike Regan is currently attending the National Council of Farmer Cooperatives Annual Meeting in New Orleans. Below are updates from Mike on what he is learning at the conference: Thursday, February 8 – 11 a.m. – Update on 199A Deduction: Since the Section 199A fix was not included in […]
Qualified Cooperative Dividends: What’s Happening with the 199A Deduction
As the dust begins to settle on the Tax Cuts and Jobs Act being signed into law, there are some areas that are beginning to surface that will need to be addressed. One provision that is glaring in the eyes of privately-held or investor owned grain elevators: the 199A deduction. The 199A provision inserted into […]
Key Ag-Related Provisions in Tax and Jobs Act Legislation
Taxpayers involved with the agriculture industry should consult with their tax advisors to see if there are steps that should be taken before year-end in preparation for the new law.
Section 199 – What It Is and How It May Change with Tax Reform
The Domestic Production Activities Deduction (DPAD), was enacted as part of the American Jobs Creation Act of 2004. It is also referred to by its tax code, section 199. DPAD was created to provide tax relief for businesses that produce goods in the United States rather than overseas. This includes individuals, C and S corporations, […]
Things to Consider with the New Lease Accounting Rules if You Lease Equipment
Last year, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) aimed to improve financial reporting of leasing transactions. This update affects all companies that lease assets such as real estate and agricultural equipment. The most significant impact is that traditional operating leases will be on the balance sheet for the first […]