Time is running out to avoid automatic renewal of a 2017 farm lease in Iowa. Whether you’re a landlord or a tenant, Iowa law requires that you formally notify the other party by September 1 if you don’t wish to continue the current lease under its existing terms for another year. Continue reading here.
The tax code allows an enhanced deduction for the donation of a qualified conservation easement. IRC § 170(b)(1)(E). This deduction is generally limited to 50% of the donor's “contribution base,” which is the taxpayer's adjusted gross income (computed without regard to any net operating loss carryback for the taxable year), less the value of other charitable contributions for the year. IRC § 170(b)(1)(G).
A special rule applies to “qualified farmers and ranchers.” These taxpayers may deduct the value of the donation up to 100% of their adjusted gross income, less the amount of all other charitable contributions. IRC § 170(b)(1)(E)(iv). The PATH Act made the enhanced conservation easement donation deduction permanent. But the definition of “qualified farmers and ranchers” may not be as it appears. Continue reading here.
The Iowa Court of Appeals recently affirmed a Winterset couple's right to ownership of an asphalt driveway and two carports through adverse possession. The case presents a good overview of this powerful, yet sometimes-forgotten legal doctrine.
The doctrine of adverse possession provides that sometimes a trespasser can become a rightful owner. This often arises when there is an honest mistake regarding a boundary line and mistaken possession continues for more than 10 years (in Iowa). That’s exactly what happened in Summit Veterinary Services v. Tindle. Continue reading here.
IRS’ Office of Chief Counsel recently weighed in on an important question for small partnerships: Are they automatically exempted from the requirement of filing a Form 1065, U.S. Return of Partnership Income, because of Rev. Proc. 84-35, 1984-1 C.B. 509?
Simply put, the answer was, “No.”
The conclusion of the CCA 201733013 was not a surprise, especially in light of the 2015 case of Battle Flat, LLC v. United States, and Internal Revenue Manual procedures detailing the requirements for applying Rev. Proc. 84-35. Yet, the advice very clearly sets forth the IRS position on this matter, which is very important to many agricultural partnerships. It also raises the question of how this provision will be applied in 2018, after new partnership audit rules are implemented.
Continue reading here.
Earlier this month, we updated you on the crisis facing the Iowa individual healthcare insurance market and Iowa's proposal to keep the market afloat. The August 7 blogpost provides a detailed review of the Iowa Stopgap Measure designed to restructure the Iowa individual market. On August 21, 2017, Iowa submitted its formal Waiver Application to the U.S. Treasury Department and the U.S. Department of Health and Human Services to implement the Iowa Stopgap Measure in 2018. It is now up to those agencies to grant or deny the request. Since the August 7 blogpost was written, several facts have changed, making the picture even more grim.
Medica, the only remaining insurer in the Iowa ACA-compliant individual healthcare market, has now requested a 56.7% increase in individual insurance premiums. To continue reading, click here.
During a financial downturn, even secured creditors often find themselves with no real recourse. Junior lienholders, in particular, are often left in the cold, even when It seems there is enough collateral to go around.
A recent bankruptcy case illustrates this fact.
The debtors in this Chapter 7 bankruptcy case were a husband and wife engaged in a farming operation. They owned farm machinery and equipment, which netted $55,613 in sales proceeds, and a homestead valued at $292,000. Farm Credit had a primary security interest in the debtors’ machinery, equipment, and proceeds, as well as a mortgage on their homestead. Growmark held a second priority security interest in the debtors’ farm equipment, machinery, and proceeds. The debtors owed Farm Credit approximately $210,163.25 and Growmark approximately $37,762.22. In other words, the value of the secured assets (including the value of the homestead) exceeded secured liabilities.
Continue reading here.
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You won't want to miss our annual September Seminars on September 21 and 22, 2017, at the Quality Inn & Suites in Ames. The two-day event is packed full of practical, relevant information you can immediately apply to your tax, legal, or business planning practice. And, if you can't travel to Ames, don't forget about our webinar option!
Day One, the Agricultural Law Seminar, is focused on legal issues stemming from the financial downturn in the farming sector. The speakers will discuss remedies and tools applicable to debtors, creditors, and suppliers. The morning will conclude with an opportunity to address questions to the expert panel. The day will also include a review of current wetlands, drainage, and permitting issues, hot topics in agricultural law, and an hour of ethics credit. This event is co-sponsored with the Iowa Bar Association and Iowa Farm Bureau.
Day Two, the Agricultural Business and Tax Planning Seminar, will focus on transferring the closely-held business in a partnership structure (could be an LCC). The session, which will include a detailed manual, will review partnership taxation rules, gifting and sale techniques, and exit strategies. Day two will also include a session detailing the top five estate planning dangers you'll want to avoid, including transfer on death bank accounts and joint tenancies among beneficiaries. The day will conclude with an hour of ethics credit. Tax, business, and legal professionals will all benefit from this day.
For detailed information or to register, click here.
We are very excited for the 2017 Federal Income Tax Schools! The books are written, the speakers and studying, and we hope you'll plan to join us at one of our two-day locations:
November 2-3, 2017 – Maquoketa, Iowa – Centerstone Inn and Suites
November 6-7, 2017 – Le Mars, Iowa – Le Mars Convention Center
November 8-9, 2017 – Atlantic, Iowa – Cass County Community Center
November 9-10, 2017 – Mason City, Iowa – North Iowa Area Community College
November 16-17, 2017 – Ottumwa, Iowa – Indian Hills Community College
November 20-21, 2017 – Waterloo, Iowa – Hawkeye Community College
December 11-12, 2017 – Ames, Iowa and Live Webinar – Quality Inn and Suites
For more information, click here.
August 23, 2017 Webinar Replay - Self-Rental
August 22, 2017 Webinar Replay - Ridesharing: Taxes for Uber and Lyft Drivers
August 17, 2017 Webinar Replay - Reconstruction of Records for Tax Compliance
August 16, 2017 The Scoop - August 16, 2017
August 2, 2017 The Scoop - August 2, 2017
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.