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The Center for Agricultural Law and Taxation (CALT) at Iowa State University, created by the Iowa Board of Regents in 2006, provides timely, critically objective information to producers, professionals and agribusinesses concerning the application of important developments in agricultural law and taxation (federal and state legal opinions of relevance, as well as critical legislative developments), and is a primary source of professional educational training in agricultural law and taxation. CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.
Upcoming Events
Stay informed on our latest news, articles and events!
Ag Law and Taxation Items of Interest
Court Blesses "Charitable Lid" Estate Planning Technique
November 16, 2009 - The U.S. Court of Appeals for the Eighth Circuit has affirmed the Tax Court on an estate planning technique that can decrease an estate's tax liability if IRS increases the taxable value on audit.
The Zero Percent Tax Rate on Capital Gains
November 11, 2009 - 2010 is the last year for the zero percent tax rate on capital gains for lower-income individuals. Are there planning steps that can be taken to utilize it before rates go up?
Tax Provisions of the Worker, Homeownership, and Business Assistance Act of 2009
November 6, 2009 – The Congress has approved legislation that expands the first-time homebuyer tax credit, and changes the net operating loss carryback rules, among other things.
County Ban On Commercial Wind Farm Development Unanimously Upheld
November 2, 2009 - A unanimous Kansas Supreme Court has upheld a county ordinance banning commercial wind farm development. See our updated technical article here.
IRS Says Post-Death Events Matter - Final Regulations
October 27, 2009 - The IRS has published final regulations concerning the impact of post-death events on valuation of decedent's estates. The regulations may create some troubling issues for practitioners.
Iowa Court of Appeals Opinions
October 22, 2009 – Another batch of Iowa Court of Appeals opinions of relevance. This time the cases summarized involve manure easements, zoning of agricultural land, Medicaid and the purchase of a tractor.
Fisher Affirmed - IRS Position on Income Tax Basis For Stock Received in Insurance Company Demutualization Rejected
October 20, 2009 - The U.S. Court of Appeals for the Federal Circuit has issued a decision without a published opinion affirming the U.S. Court of Federal Claims in the Fisher demutualization case. What to do now.
LLC and LLP Members Are Not Per-Se “Passive” Limited Partners – Two Courts Scold IRS For Lack of Regulations
Updated October 19, 2009 – The U.S. Tax Court and the U.S. Court of Federal Claims have ruled that holding an interest in an LLC does not automatically convert the holder to limited partner status for passive loss purposes.
IRS Provides Additional Guidance on Home Mortgage Interest Deduction Limitation
October 18, 2009 - The IRS has recently released a legal memorandum on its view of the dollar limitation on the home mortgage interest deduction.
Most Recent Iowa Court of Appeals Decisions of Relevance to Ag Operators and Rural Landowners
October 9, 2009 - Here's our latest summaries of Iowa Court of Appeals opinions of importance to agricultural operators and rural landowners. The summaries concern cases involving zoning, easements, Iowa estate tax, partnership property and estate matters.
Tax Court Affirmed - "QFOBI" Definition Does Not Include Debt Interests
October 9, 2009 - The U.S. Court of Appeals for the Eighth Circuit has affirmed the Tax Court's decision that the definition of a "Qualified Family-Owned Business Interest" does not include debt interests.
Tax Expert Opines on the Ethanol Production Credit
October 8, 2009
Note: The following commentary is written by Christopher Bergin, the President and Publisher of Tax Analysts. He is the former editor of Tax Notes and has written extensively on tax policy and administration issues for almost 30 years. He has degrees from Boston College, Pace University School of Law and the Columbia Business School's Senior Executive Program. Let us know what you think on our blog.......
Divided Tax Court Holds That Roth IRA Custodial Account Is Not An Eligible S Corporation Shareholder
October 1, 2009 - The full Tax Court has ruled that a Roth IRA is not an eligible S corporation shareholder, but the court was split. In addition, the court made some interesting comments concerning the authority of IRS Revenue Rulings and other IRS pronouncements.
Counties Eligible for Extended Replacement Period for Livestock Sold Due to Drought
September 22, 2009 - IRS publishes list of counties eligible for extended replacement period for livestock sold due to drought.
Court Says USDA Misinterpreted Its Own Regulation
September 20, 2009 – A federal court has ruled that the USDA misinterpreted its own “active engagement” test to deny a farming operation farm program benefits.
Court Battle Over Option Agreement To Repurchase Farmland - Iowa
September 17, 2009 - The Iowa Court of Appeals has decided a case involving a battle between siblings and an option to repurchase farmland.
Iowa Farmer Wins Bankruptcy Case in U.S. Court of Appeals for the Eighth Circuit
September 16, 2009 - An Iowa farmer has won an important bankruptcy tax case in the Eighth Circuit, but a dissenting opinion may give IRS reason to pursue further. Read our updated technical article on the issue.
Flu Vaccine Subject To Sales and Use Tax - Iowa
September 16, 2009 - The Iowa Department of Revenue has ruled that a pharmacy wanting to provide the flu vaccine free-of-charge to uninsured persons, must first pay sales and use tax.
Additional Clarification Of Tax Questions Provided
Updated September 4, 2009 – The IRS has provided some additional answers to questions concerning the first-time homebuyer credit and disaster assistance. Hat tip to Kristy Maitre.
Two More Iowa Court Opinions Involving Real Estate Issues
September 3, 2009 - The Iowa Court of Appeals has decided two more cases involving real estate issues - whether a mortgage is valid and adverse possession.
Health Savings Accounts - A Missing Component of the Current Health Insurance "Reform" Debate
August 31, 2009 - The Congress is considering a major overhaul of the U.S. health care system. Hardly any mention is made, however, of an important option that went into effect at the beginning of 2004.
Tax Court Says Single-Member LLC Must Be Respected For Gift Tax Purposes
August 27, 2009 - The full Tax Court has issued a divided opinion holding that a single-member LLC must is not to be disregarded for gift tax purposes. The Tax Court will later rule on whether a valuation discount should apply.
Iowa Courts Decide More Ag-Related Cases
August 26, 2009 - The Iowa Court of Appeals and Supreme Court have issued opinions involving probate matters (here and here), contracts, the scope of an easement over farmland and fur-bearing animal trapping law.
IRS Provides Guidance On How To Depreciate Ethanol Plant Assets
August 25, 2009 – IRS has issued a Notice of Proposed Revenue Ruling concerning the depreciation treatment of tangible assets at ethanol plants. Comments are due by November 23, 2009.
IDOR Ruling At Odds With IRS On Whether CRP Land Is Used in Ag Production
August 23, 2009 - The Iowa Department of Revenue has issued another ruling on whether sales tax is due on an all-terrain vehicle used to spray CRP ground.
Iowa Department of Revenue Rules On The Material Participation Test For Purposes of The Iowa Capital Gains Deduction
August 20, 2009 – The material participation test contained in the Iowa Capital Gains deduction has long generated confusion. The Iowa Department of Revenue has issued another ruling on the matter.
Federal Government Recognizes New Mexico Farmer For Huge Yields
August 19, 2009 - A New Mexico farmer has attracted the federal government's attention for his farming "success" - his ability to hide income and assets, avoid paying taxes, and illegal receipt of federal farm program payments.
Extended NOL Carryback Filing Deadline – Fall 2009
August 18, 2009 – Recent legislation allows certain businesses to extend the amount of time a net operating loss can be carried back to up to five years. But, to take advantage of the extended carryback period, an election must be made in a timely manner.
Two More Opinions of Relevance from the Iowa Court of Appeals
August 5, 2009 – The Iowa Court of Appeals has issued opinions involving the Iowa Real Estate Disclosure Act and the credibility of a handwriting expert involving loans to a hog feeding operation.
IRS Loses Again on Chapter 12 Tax Arguments
August 3, 2009 – While we continue to wait on the 8th Circuit’s opinion in Knudsen, the IRS has lost on all of their arguments raised in another Chapter 12 Bankruptcy case in the U.S. Bankruptcy Court for the District of Colorado. We have updated our article on the issue and all of the decided cases to include the new decision.
Farm Bill Commodity Programs and Payment Limit Rules
June 6, 2008 - Updated June 19, 2008
The new Farm Bill tweaks existing commodity programs and the payment limitation rules.
