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 […]
Eligibility Checklist for Section 179 Depreciation
A true reality of keeping a business running is the ongoing purchase of equipment throughout the year, year after year. Fortunately, Section 179 (depreciation expense election) is designed to make purchasing that equipment financially attractive during the calendar year. With the increased importance of the Section 179 deduction—permanently $500,000 for federal tax purposes—the following can […]
Don’t Lose Ground: Things to Consider When Selling the Family Farm
Farm owners should carefully consider what would happen to their farmland in the event one of the owners passes away. Many issues come to mind, including whether the farm, as a business, would be able to survive. Questions have increasingly been centered on step-ups. Have you recently asked yourself how much of a step-up in […]
Enhanced Deduction for Contributions of Food Inventory
When ordinary income property such as inventory is given to charity, the deduction is generally limited to the taxpayer’s basis in the property. However, a special rule applies to several categories of inventory, including contribution of food inventory by a business.
Proceeds from an Easement or Right-of-Way
When you hear someone talk about building new pipelines or wind turbines, they often refer to 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.