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 […]
The Embezzler in the Next Cubicle: Is it Time for a Fraud Prevention Check-up?
Mary Jane looked like many fraudsters: unremarkable. She was 40 years old; medium-length brown hair; short, unpolished nails; drab clothing. She was a faithful 16-year bookkeeper at ABC Manufacturing — a small, family-owned business. She and Tom, married since she was 19, had three children. However, Mary Jane was anything but ordinary. Actually, she was […]
Financial Performance Measures for Farms
Farmers who have a large investment in land, machinery, livestock, and equipment need to keep informed about the financial condition of their operations. Some useful measures of financial performance can be calculated from information found in most farm record books and accounting programs. These measures can help farmers assess the profitability, debt capacity, and financial […]
Agribusiness Companies Need to Look at R&D Credits
Many business owners are aware that the federal research and development (R&D) credit is based on what the government deems as qualified activities undertaken by a company each year. However, over the years, many opportunities to take advantage of the credits may have been passed over by business owners due to the complex rules around […]
Checklist of Farm Expenses Requiring Personal Adjustment
Farm owners reporting on Schedule F typically incur some expenditures that represent a mix of business and personal use. While no specific rules exist for making the computation between the business portion and personal portion, all allocations should be done in a reasonable manner. We have provided the following checklist to assist in identifying areas […]