Selected 2016 Taxation Issues for Iowa Farmers

It has been estimated that the Internal Revenue Code and its accompanying regulations comprise more than 10 million words. The complexity is staggering. Yet, every taxpayer is expected to follow every mandate. Business taxpayers, including farmers, should always seek out trusted tax advisors to guide them through the thorny tax code. The money paid for good counsel is a wise and necessary investment.

Nonetheless, it is important that all taxpayers educate themselves regarding the Tax Code and the provisions that most impact them. Following is a concise, alphabetized list of some key tax provisions important to Iowa farmers. It is not intended to be all-inclusive or to offer tax advice. Rather, this review is designed as an educational reference guide, a starting place so to speak for some of the issues about which we, at the Center, most often field questions. It contains recent updates, notes unique Iowa provisions, and directs the reader to further resources for in-depth analysis or information. We hope it is useful.

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Topics include:

4H and FHA Projects      

Affordable Care Act       

Individual Responsibilities           

Employer Responsibilities           

Bonus Depreciation       

Trees and Vines               

Passenger Automobiles               

Built-In Gains Tax            

Charitable Contributions              

Charitable Donations from IRAs

Charitable Gifting of Grain          

Contributions of Food Inventory              

Conservation Easements             

Other Charitable Contributions 

CCC Loans, Section 77 Election and Revocation  

Commodity “Wages”     

Conservation Easements             

Conservation Expenses

Cost Share Payment Exclusion for Conservation Practices            

Child Tax Credit

Earned Income Credit   

Crop Insurance Deferral               

CRP Payments and SE Tax           

DPAD   

Drainage Tile     

Easement Issues – Wind Farms and Pipelines    

Education Expenses       

American Opportunity Tax Credit            

College Savings Iowa 529 Plans 

Energy Credits  

Nonbusiness Energy Property Credit     

Residential Energy-Efficient Property Credit       

Estate, Gift, and Generation Skipping Tax            

Federal Estate Tax          

Iowa Inheritance Tax     

Estimated Taxes              

Fertilizer and Lime          

Electing to Expense        

Allocating Residual Fertilizer to Purchase Price   

Filing Deadlines

Iowa Capital Gain Deduction      

Net Investment Income Tax      

Prepaid Expenses           

Record Keeping Requirements 

Section 179       

Tangible Property Regulations