2013 Summer Seminar in Traverse City, Michigan
June 13-14, 2013
Co-sponsored by the Michigan Society of CPAs
About the Seminar: Farm Income Tax, Estate and Business Planning
This seminar is designed to provide attendees with a comprehensive and practical understanding of major agricultural tax, estate and business planning issues. In addition, the speakers are open to questions and responses from the attendees. It is an excellent opportunity for accountants, lawyers and agribusiness professionals to update their knowledge of tax, business and legal matters related to agriculture and farm business activities.
Included with your registration fee is electronic materials (additional cost for spiral-bound manuals), refreshments and meals.
Seminar Location and Accommodations
- This course provides continuing education for lawyers, tax practitioners, accountants, enrolled agents, and others interested. Please indicate states in which you would like to receive credit on your registration form, and we will assist in that process. Payment for fees (other than the state of Iowa) is the responsibility of the attendee.
- Possible total CPE/CLE credit:
- 17.2 (based on 1.0 credit hour per 50 minutes of instruction)
- 14.3 (based on 1.0 credit hour per 60 minutes of instruction)
- This seminar provides a total of 860 minutes of instruction. Please note some CPE organizations do not accept partial credit hours.
- Iowa - Approved for 14.25 hours by the Supreme Court Commission on Continuing Legal Education.
- Iowa - Qualifies for 17 hours of CPE for certified public accountants (The Iowa Accountancy Examining Board does not pre-approve seminars, but it is left to the individual to determine the appropriate course of study).
- Enrolled Agents
- Approved for a total of 17 Credit Hours:
- 4 Credit Hours in the Category of Federal Tax Law Update
- 13 Credit Hours in the Category of Federal Tax
Click here to purchase materials online
Or download the registration form/brochure (PDF) and mail to: Center for Agricultural Law and Taxation, Iowa State
University, 2321 N. Loop Dr. Ste 200, Ames, Iowa 50010
2 Day Seminar Agenda
Thursday, June 13, 2013 - Day 1 - Farm Income Tax
7:30-8:00 a.m. - Registration and Continental Breakfast
8:00-9:50 a.m. - Farm Income Tax Cases, Rulings and Legislative Update (McEowen) - This session addresses all of the recent major cases and rulings impacting agriculture from across the country. Also included is up-to-the-minute coverage of new legislation and Treasury Regulations (such as the repair regulations), and their impact on farm clients. 9:50-10:10 a.m. - Morning Break
10:10-12:00 p.m. - Real Estate and Investment Tax Issues (Neiffer and Kristan) - This session includes coverage of passive loss issues including grouping of activities and how the rules work with flow-through entities, and the application of the new 3.8% Medicare surtax to passive sources of income common to agricultural clients, and a discussion of the material participation test and how it applies to agricultural clients especially in the context of leasing. Also addressed will be the ability to make grouping elections for the client’s benefit. Also covered will be various types of leasing strategies for farm and ranch clients, the I.R.C. §121 housing exclusion; selected like-kind exchange issues and split-interest purchases.
12:00-1:00 p.m. - Luncheon (provided)
1:00-2:45 p.m. - Depreciation/Potpourri of Agricultural Tax Issues (all speakers) - This session covers a range of tax issues of importance to practitioners with agricultural clients. Issues addressed include gifting ag commodities; like-kind exchange depreciation elections and rules; Chapter 12 bankruptcy tax issues; tax issues associated with trading and/or selling machinery; depreciation; hedging vs. speculation; CRP tax issues; material participation rules for farmers; farm income averaging; paying ag wages in-kind; deferred sales contracts; deferred livestock sales; non-taxable fringe benefits; employment agreements for family members; Form 1099-K and other reporting issues; conservation easements; tax issues associated with wind energy and oil/gas leases; capital gain rates effective beginning in 2013 and planning concepts in light of higher individual rates as compared to C corporate rates.
2:45-3:00 p.m. - Afternoon Break
3:00-3:50 p.m. - Tax Shelter Farming: Cash Basis, Passive Losses and AMT Problems (Kristan) - The tax law has a number of provisions aimed at shutting down the farm tax shelters of the 1970s. These dusty provisions can have surprising and unhappy consequences when no tax shelter motive is involved. This session covers what a “tax shelter” farm is and why it’s important to understand the associated tax provisions.
3:50-4:45 p.m. - Common Return Errors and Audit Issues for Ag Clients (all speakers) - Thissession provides a heads-up on the common errors that are made on farm returns, and what the common audit issues are with the IRS for farm and ranch clients.
Friday, June 14, 2013 - Day 2 - Farm Estate and Business Planning
7:30-8:00 a.m. - Registration and Continental Breakfast
8:00-9:50 a.m. - Estate and Business Planning Cases, Rulings and Legislative Update (McEowen) - This session covers the key court rulings and developments from the Treasury and IRS impacting decedents’ estates and trusts and succession of the farm or ranch business. Legislative developments in the Congress concerning the transfer tax system are also addressed. Specific issues addressed will include recent developments concerning the portability election, valuation issues including alternate and special use valuation developments, and family limited partnerships.
9:50-10:10 a.m. - Morning Break
10:10-12:00 p.m. - The Use of Entities in the Estate and Tax Planning Process (Neiffer and Morehead) - This session addresses the choice between a C corporation and an S corporation under the new rules. Also covered are the tax and non-tax aspect of converting an S corporation to a C corporation, the use of multiple entities for farm and ranch clients, and the Mizell problem. The session also covers the use of an LLC to both reduce self-employment tax and eliminate the net investment income tax. Other topics addressed include discounts for LLP and LLC interests in the estate planning process, manager-managed LLCs as compared to member-managed LLCs, and the use of a corporate member of an LLC to retain tax-free fringe benefit advantages. The use of buy-sell agreements and transfers with retained interests as part of the estate/succession planning process will also be discussed.
12:00-1:00 p.m. – Luncheon (provided)
1:00-2:00 p.m. - S Corporations, Partnerships and the 2013 Tax Law (Kristan) - The 2013 tax law raises some interesting planning issues for clients with S corporations and partnerships. This session will cover income tax basis issues, the at-risk problem, the impact of the 3.8% Medicare surtax on clients in S corporations and partnerships, compensation issues, inside vs. outside basis and issues presented by foreign ownership of entity interests.
2:00-2:45 p.m. - Special Use Valuation and Other Unique Tax Planning Opportunities for Farmers (McEowen, Neiffer and Walden) - This session highlights the most important areas of I.R.C. §2032A for practitioners. Addressed will be the most troublesome eligibility qualification traps for the unwary, the procedure of and requirements for making the election, the material participation test, integrating the election with the client’s overall estate plan, and various forms and checklists used in determining an estate’s eligibility for the election and various management agreements that are helpful to maintain post-death eligibility.
2:45-3:00 p.m. - Afternoon Break
3:00-3:50 p.m. - The Use of Trusts in the Estate Planning Process (Neiffer) - This session highlights the proper using of trusts in the estate planning process related to farmers and ranchers. Addressed will be the use of a revocable living trust versus a will, the use of a Charitable Remainder Trust for retiring farmers and ranchers to save income and self-employment tax, the use of an intentionally defective grantor trust in the proper setting, and discussion of GRAT, GRUT, ILIT and other trust terminology.
3:50-4:45 p.m. - Defined Benefit Plans for Agricultural Clients (McEowen, Morehead, Neiffer and Walden) - As an estate planning tool, the use and application of defined benefit plans is often overlooked for agricultural clients. However, such plans can be a very useful tool for a farmer or rancher wanting to retire from the business. This panel session will discuss the nuances of such plans for the ag client.
About the Speakers
Roger McEowen is the Leonard Dolezal Professor in Agricultural Law in the Department of Agricultural Education and Studies and Director of the Center for Agricultural Law and Taxation at Iowa State University. He is a member of the Iowa and Kansas Bar Associations and is licensed to practice in Nebraska. He is widely published in law reviews and in other agricultural law publications and conducts agricultural tax and law seminars across the country.
Joe Kristan, CPA, is the Roth & Company Tax Technical director. A respected tax technician, Joe's practice includes real estate, manufacturing companies, closely-held businesses, and foreign-owned U.S. operations. Mr. Kristan works regularly with partnership taxation and corporate acquisitions and restructurings. Mr. Kristan frequently teaches at tax schools and is an author of articles for technical and general publications. Mr. Kristan also writes the Roth & Company tax weblog and e-mail newsletter.
Andrew Morehead is an accountant in Eaton, CO. He is the past president of the Public Accountants Society of Colorado, and has been a Governor on the Board of the National Society of Accountants. His practice focuses heavily on tax and accounting issues associated with farming and ranching operations and agribusinesses.
Paul Neiffer is an Agribusiness Certified Public Accountant and is a Principal in the Agribusiness Group of CliftonLarsonAllen LLP. He is based out of Yakima, WA, and specializes in income taxation and accounting services related to farmers and processors. Paul authors a monthly column for Top Producer magazine and maintains a blog entitled "The FarmCPA" located at www.farmcpatoday.com.
Richard C. Walden, CPA, is a sole practitioner in Carlinville, Illinois. He is a regular speaker for tax professionals regarding agricultural tax issues. His clients include many farmers and farm operations and agribusinesses. Prior to entering private practice in 1980, he was a revenue agent with the Internal Revenue Service. He is a member of the Illinois CPA Society, National Association of Tax Professionals, and the American Agricultural Law Association.
Cancellations must be made no later than May 31, 2013 by 4 pm CST. For cancellations after May 31, one-half of the registration amount paid will be refunded. No refunds are available on or after the first day of the seminar.
Tax Deduction for Educational Expenses
Treasury Regulation § 1.162-5 permits an income tax deduction for educational expenses undertaken to (1) maintain or improve skill in one’s employment or other trade or business, or (2) meet the express requirements of an employer or a law imposed as a condition for retention of employment job status or rate of compensation.