May 2017
Coming in July: Comprehensive S Corporation Taxation
Because of their many tax advantages, S corporations are everywhere. Yet their tax rules can be very complex. To meet this need, CALT is bringing our practitioners an in-depth review of S corporation taxation. The two-day course, held July 20- 21, 2017, at the Courtyard by Marriott in Ankeny, Iowa, will be taught by Bob Jamison, CPA, PhD, a foremost expert and author in the field. Participants will receive a 350-page workbook and an opportunity to ask substantive questions.
We hope you’ll join us live or via webinar for this exciting new offering! For more information or to register, click here.
Register for a June Webinar
Summer's a good time to earn some CPE while exploring a new topic or brushing up on a familiar one. We're offering a number of webinar opportunities in June. We hope you'll join us!
June 6: Ethics
June 7: The Scoop
June 8: Form 3115, Part I
June 13: Form 4797
June 14: 2017 Federal Income Tax Update
June 15: Form 3115, Part II
June 20: My Client Dies, What's Next?
June 21: The Scoop
June 22: The Fundamentals of Trusts
June 27: Payment of Wages with Commodities and Gifting Grain
June 28: 4th Annual Taxpayer Advocate Town Hall Meeting (Free)
June 29: Handling Tax Returns for the Amish and Mennonites
Landowner Faces Possible $2.8 Million Clean Water Act Fine in Upcoming Trial
Last summer, a federal court found a California landowner liable for violating the Clean Water Act (CWA) because he tilled a 450-acre parcel of his land to plant wheat. He is now preparing for an August 14, 2017, trial. At issue in the trial will be (1) the scope of his CWA violations, (2) the appropriateness of the United States’ requests for restoration and mitigation, and (3) the amount of his civil penalty. The government is asking for a civil penalty of $2.8 million, plus tens of millions more worth of off-site mitigation. The landowner argues that the case raises the larger question of whether the federal government even had jurisdiction to pursue the CWA case against him. Although he asked the federal court to delay his trial pending resolution of a different Ninth Circuit case addressing the same jurisdictional question, the district court recently denied his motion.
The debate over the definition of Waters of the United States (WOTUS) has been raging for years. A change in administration has ushered in a change in executive policy. Nonetheless, the question of which waters should be jurisdictional for purposes of the Clean Water Act is far from resolved. And the prosecution of this case, and others like it, continues.
To continue reading, click here.
Segregating Fertility Costs
Tax rules require the purchase price of land to be allocated among the land and the various assets that are purchased with the land, such as fences, wells, roads, buildings, and timber. With the increases in the price of farmland and the cost of fertilizer, some buyers of farmland are allocating part of the purchase price of the land to fertilizer that was applied to the land before the purchase. Similarly, some taxpayers are allocating part of the date-of-death FMV of farmland to fertilizer that was applied to the land before the decedent’s death. That allocation allows them to deduct the cost of the fertilizer instead of including that portion of the purchase price or date-of-death basis in the nondepreciable basis of the land.
This issue reviews the tax rules that require buyers and sellers to allocate the purchase price of a group of assets and applies those rules to fertilizer acquired with purchased or inherited farmland. To continue reading, click here.
Federal Court of Appeals Vacates Registration Requirement for Model Aircraft
The U.S. Court of Appeals for the District of Columbia issued a blow to the Federal Aviation Administration (FAA) this month when it vacated the portion of a 2015 FAA Rule requiring registration of model aircraft.
On December 14, 2015, the FAA announced a new Rule requiring registration of small unmanned aircraft systems (UAS) weighing more than 0.55 pounds and less than 55 pounds. Effective December 21, 2015, the Rule required owners of small UAS, including those operated strictly as model aircraft, to complete a registration process. The registration process, which costs $5, assigns a registration number that must be attached to the model aircraft. Those who fail to register are potentially subject to civil and criminal penalties, including up to three years' imprisonment.
Shortly after the Rule was issued, a D.C. model aircraft hobbyist filed an action against the FAA, alleging that the Rule violated § 336(a) of the FAA Modernization and Reform Act (Act). On May 19, 2017, the U.S. Court of Appeals for the District of Columbia agreed.
To continue reading, click here.
Donate to CALT
As you know, our work at the Center is dependent on the fees generated by seminar registrations and gifts. If you would like to donate to further the Center's efforts, please contact our Program Administrator, Tiffany Kayser at tlkayser@iastate.edu or (515) 294-5217. You can also give online with a credit card. We thank you for your generous support.
Iowa's High Court Upholds Class Certification in Nuisance Case
The Iowa Supreme Court recently blessed a class action, paving the way for roughly 4,000 Muscatine residents to potentially obtain damages from a local corn wet milling plant.
The case was filed in 2012 by eight Muscatine residents living near a milling plant operated by Grain Processing Corporation (GPC). GPC has used this plant to convert corn kernels into products for commercial and industrial use since 1943.
To continue reading, click here.
Regularly Review Those Estate Planning Documents
“Ademption” isn’t a doctrine often discussed outside of law school classrooms. But a recent case from the Iowa Supreme Court signals that it’s time for a refresher. Steinberg v. Steinberg, 2017 Iowa Sup. LEXIS 44 (April 28, 2017) illustrates the sometimes unexpected impact this doctrine can have on an estate plan. It’s also an exemplar for the need to regularly review estate planning instruments.
To continue reading, click here.
First-Time Homebuyer Savings Accounts Coming to Iowa
Iowa SF 505, signed into law on May 9, 2017, authorizes tax-preferred “First-Time Homebuyer Savings Accounts” (FTHSA). These new accounts will be available beginning in tax year 2018. The benefit of the new law is that account holders may exclude from their Iowa adjusted gross income (AGI) yearly deposits into FTHSAs in amounts up to $2,000 a year.
Continue reading here.
The Center for Agricultural Law and Taxation 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. The Center'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.