See What's Coming to CALT in 2016
We are looking forward to a number of new CLE and CPE offerings in 2016. Please visit our seminars page to learn more details about our 2016 September Seminars: Navigating Changing Times and our 43rd Annual Federal Income Tax Schools.
We also have a number of exciting webinars available, including an AgLaw Webinar Series on farm leases and Iowa fence laws. As always, Kristy is offering the biweekly Scoop, as well as numerous tax webinars on a variety of helpful topics. She also has ethics webinars guaranteed to hit a time convenient to you. Check out our offerings. If you don't find what you want or need, please let us know!
See What's New on TaxPlace
This month, we added a number of helpful resources to TaxPlace, our subscriber service. We trust you'll find them helpful. Kristy has also begun adding smaller, daily (or so) bits of tax news you can likely use immediately. Called TaxBytes, these tax updates, while on TaxPlace, are free to all. Here's a sample:
Following are other TaxPlace offerings for the month of April:
Water quality in Iowa has been in the spotlight for many months. In honor of Soil and Water Conservation Week, we are addressing a topic that comes up frequently: What is the tax treatment for various water quality measures rural landowners or farm operators can implement? Are there some measures that would be more advantageous than others, from a tax point of view? This article—not meant to provide in-depth treatment of this somewhat complex topic—provides a general overview of the tax implications of various water quality measures, specifically those targeting nitrogen reduction.
It’s a common situation that often leads to conflict. A father dies without a will and his three children inherit his farm through the rules of intestate succession. Or maybe an aunt dies with a will leaving a one-third share of her 80-acre pasture to her nephew and the remaining two-third’s share to her niece. In both cases, the parties inheriting the property are tenants in common.
Most Iowa landowners understand the basic rights of tenants in common. They each have an undivided interest in the whole property. Regardless of their respective ownership interests, they each have the right to possess the entire parcel. A tenant in common with exclusive possession of the entire parcel must pay rent to the other tenants in an amount reflecting the non-possessing tenants’ ownership shares. When tenants in common die, their respective shares are passed to their heirs in the same manner as their other property. Continue reading here.
Recently, the Iowa Legislature enacted new legislation to require that an agreement to terminate a farm lease be in writing. The Governor signed HF 2344 into law on April 13, 2016.
This simple change better aligns Iowa's farm lease termination statute with legislative intent and court-declared policy and may prevent unnecessary court battles. It has long been the case in Iowa that, absent an agreement to terminate a farm lease, a farm tenant or a landlord must abide by strict statutory notice procedures to avoid an automatic renewal of the lease. Under Iowa Code § 562.2, “a farm tenancy is continued beyond the agreed term for the following crop year upon the same terms and conditions as the original lease unless written termination notice is served upon either party…” Iowa Code § 562.7 requires this written notice to be (1) served by certified mail before September 1, (2) personally served on or before September 1 in the same manner as original notice of a lawsuit is served, or (3) delivered to the other party with an acceptance of service signed by the person receiving the notice on or before September 1. Continue reading 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 email@example.com or (515) 294-5217. You can also give online with a credit card. We thank you for your generous support.
IRS Notices Concerning CRP Payments
IRS is issuing “spot check” notices on CRP payments. This does not appear widespread, but is of some concern to tax professionals, given the history of CRP taxation and court cases. In the most recent case of Morehouse v. Commissioner, the court issued a favorable position to the “non-farmer” participant enrolled in CRP. IRS has chosen to non-acquiesce on the case and made it very clear in its October 13, 2015, Action on Decision that IRS would continue to pursue the issue. Continue reading here.
May 5 - IRS Public Forum in Red Oak, Iowa
You're invited to join us in Red Oak for the National Taxpayer Advocate Public Forum on May 5, 2016, at 8:30 am at the Montgomery County Family YMCA. Senator Grassley and National Taxpayer Advocate Nina Olson will host the forum. Our own Kristy Maitre has been invited to represent the agricultural and local taxpayer communities on a panel. For more information on this event, please click here. Please contact Kristy directly if you have any questions about the forum or input for her to share.
From the Ag Docket...
We work to keep you up to date on the latest court cases, laws, and issues important to you. Here's a summary of updates for the month:
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.