April 2017
Back to the Basics: A Foundational Income Tax Return Preparation Course
We're very excited to offer "Back to the Basics: A Foundational Income Tax Return Preparation Course.” Held May 11-12 at the Ames Quality Inn & Suites (or live via webinar), this course will teach basic tax return preparation skills all tax return preparers must know. Attendees will receive two days of federal individual income tax return preparation training, as well as the opportunity to complete a return from beginning to end.
Whether you’re new to the profession or simply looking for a comprehensive refresher, we think this course will be of value to you. You’ll experience personal interaction with knowledgeable instructors excited about the material and willing to field all types of questions. For more information about this seminar, or to register, please click here.
Also in April
Check out these additional updates from our website during the month of April.
We Have a Great Slate of May Webinars!
May 3, 2017: The Scoop: Hot Issues
May 4, 2017: Protect Your Office against Cybercrime
May 9, 2017: Crowdfunding
May 16, 2017: Understanding the Employer Identification Number (EIN) and Other Related Issues
May 17, 2017: The Scoop - Hot Issues
May 31, 2017: The Scoop - Hot Issues
Tax Treatment of Water District Assessments
Water districts in Iowa assess landowners in the district for the costs the district pays to build and maintain improvements such as drainage ditches, dams, terraces, water ways, and tile lines. Because these improvements benefit the land in the water district and not the public in general, landowners cannot deduct their assessment as a tax on real property. However, I.R.C. §§ 164(c)(1) and 175(f) allow landowners to claim one the following income tax benefits for part or all of water district assessments.
- A deduction for the tax year in which he or she paid the assessment
- A deduction spread over ten years beginning with the tax year in which he or she paid the assessment, or
- An addition to the basis of the taxpayer’s land that is in the water district.
The tax benefit the landowner can claim depends on the water district’s purpose for the assessment and whether the landowner is in the business of farming for purposes of the I.R.C. § 175 soil and water conservation deduction.
Continue reading here.
How Did Agriculture Fare During the 2017 Iowa Legislative Session?
The Iowa Legislature’s 2017 session drew to a close on April 22, 2017. For agriculture, the session was largely marked by the state’s revenue shortfall, which left tax cuts important to farmers on the table. It also meant the session adjourned for another year without a long-term water quality funding mechanism.
Nonetheless, the legislators passed a number of bills impacting agriculture or rural landowners this session. Following are highlights.
Classifying Palmer Amaranth as a Primary Noxious Weed and an Invasive Plant
Palmer Amaranth is an invasive plant that presents a grave danger to Iowa’s corn and soybeans. It has begun to invade Iowa from the south and is now found in up to 82 counties. HF 410 places palmer amaranth on the primary noxious weed list. It also classifies the weed as an invasive plant that is prohibited for import, sale, or distribution in Iowa. Violation of the prohibition is punishable by fines.
Continue reading here.
Unveiling of Tax Reform "Plan" Generates More Questions Than Answers
As President Trump’s first 100 days were winding down, his Administration unveiled a purported tax reform proposal designed to stimulate “economic growth” and increase “American jobs.” The proposal was unveiled during a press conference April 26. It was accompanied by a one-page list of bullet points. The headline from the media event was that President Trump is seeking to implement a “massive tax cut,” reducing corporate taxes from 35% to 15%. The reality of the announcement is that we really have no more detail about Trump’s proposed tax reform. The April 26 announcement was essentially a rehash of the broad, high level proposals discussed by the President during his campaign.
The announcement was made by Gary Cohn, Director of the National Economic Council, and Steven Mnuchin, the new Treasury Secretary. The plan was billed as “one of the biggest tax cuts in American history.” The short presentation was made in two parts. First, Cohn outlined the rough principles associated with proposed individual income tax reform and Mnuchin walked through the outline of business tax proposals.
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 tlkayser@iastate.edu or (515) 294-5217. You can also give online with a credit card. We thank you for your generous support.
Welcome, Phil Harris
We are very excited to announce that Phil Harris--a national expert on agricultural taxes with deep Iowa roots--has joined our Center as a visiting professor. In this part-time role, Phil will teach at our tax schools and other seminars, write articles for our website and newsletters, and assist with analyzing key tax developments important to our constituents. For more information about Phil or his new role at Iowa State, please click here.
Phil has written a new article for TaxPlace this month detailing the tax treatment of water district assessments. Our newsletter readers can access this article without a subscription to TaxPlace.
Also on TaxPlace
April 24, 2017 IRS Issues Rev Proc 2017-33 Providing Guidance for First Year Depreciation
April 19, 2017 The Scoop - April 19, 2017
April 18, 2017 Applicable Federal Rates (AFRs): May 2017
April 5, 2017 The Scoop - April 5, 2017
Comprehensive S Corporation Taxation Course
On July 20-21 at the Courtyard Marriott in Ankeny Iowa (and live via webinar), CALT is offering a comprehensive course on S corporation taxation. This two-day course will be taught by Bob Jamison, CPA, PhD, a foremost expert and author in the field, and Phil Harris, JD, CALT’s visiting professor.
This course will cover topics including eligibility, conversion, material participation and grouping, traps and strategies for compensation of shareholder-employees, shareholder debt basis, built-in gains tax, purchase and sale, net investment income, and current legal developments impacting the S corporation. 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! Registration will soon be available here.
Problem Resolution Day
A few appointments may remain for the May 3, 2017, problem resolution day with the Iowa Taxpayer Advocate Service. For more information, click 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.