IRS Issues Statement About 2018 Withholding
IRS issued a statement December 26, 2018, saying that it was working to develop withholding guidance to implement the new tax law. IRS said that it expected initial withholding guidance to be issued in January, with employers and payroll service providers encouraged to implement the changes in February. The guidance will be created to work with the existing Forms W-4s, and no further action should be needed by the taxpayers. Continue reading here.
IRS Issues Advisory about Pre-Paying Property Tax
Because H.R.1, the new tax law, will cap the amount of state and local income and property taxes individuals can deduct on their 2018 returns, many taxpayers have been scrambling to prepay their property taxes in 2017, hoping to preserve a full deduction. On December 27, 2017, IRS issued an advisory clarifying that there are limits to what property taxes can be prepaid and deducted. Continue reading here.
Banker Liable for Nondisclosure and Misrepresentation
The Iowa Court of Appeals recently affirmed a judgment in favor of a borrower, against his banker, for claims of fraudulent misrepresentation and nondisclosure.The testimony of three players—the borrower, the banker, and a financially struggling customer—painted three wholly different pictures. In the end, however, a jury believed the borrower, finding that the banker and the financially struggling customer--once a friend of the borrower--had worked together to defraud the borrower. Continue reading here.
As the year concludes, we’re taking some time to review the most significant happenings in agricultural law and taxation in 2017. Some closed chapters on drawn-out litigation or administrative action. Others signal the beginning of much more activity to come. In any event, 2017 did not disappoint in terms of lots to discuss. We review these highlights below, in no particular order. And we’ll continue to keep you posted as the calendar rolls ahead to 2018.
We also want to thank you all for your support of CALT throughout 2017. We appreciate your attendance at our seminars and webinars, your phone calls and your emails. We look forward to serving you in 2018. Happy new year!
Read our 2017 review here.
On December 22, 2017, President Trump signed H.R.1 into law. This new law implements the most significant changes to our tax code in more than 30 years. Most changes go into effect January 1, 2018, meaning that they will impact tax returns filed in 2019. However, tax practitioners and their clients need to understand how the law is impacting them in 2018 so they can make good business decisions and plan accordingly.
As mentioned elsewhere in this newsletter, CALT will be providing many educational opportunities and resources during the upcoming weeks to educate tax professionals and producers about this new law. Stay tuned for more information. We will be keeping you posted!
To read a detailed summary of the new law, click here.
We told you last April about changes that would come to the Iowa Beginning Farmer Tax Credit program in 2018, absent legislation. Because those legislative changes did not occur, cuts to the program are now being felt by beginning farmers and landlords around Iowa.
In 2009, the Iowa Legislature placed a cap of $6 million on the value of beginning farmer credits that could be awarded in Iowa. When it created the custom farming contract tax credit (CFTC) in 2013, the Legislature increased this cap to $12 million, $8 million of which was allotted to credits for leasing land, machinery and breeding livestock, and $4 million of which was allotted to the CFTC. The 2013 legislation also raised the percentages of available credits. The 2013 provisions expire on January 1, 2018. This means the following changes kick in January 1, 2018:
- The allocation for Beginning Farmer Tax Credits is reduced from $12 million to $6 million
- The custom farming contract tax credit is eliminated
- The tax credit for cash rent leases decreases from 7% to 5% and the credit for crop share leases decreases from 17% to 15%
- The additional 1% credit for leasing to a beginning farmer who is a veteran is eliminated
Continue reading here.
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Our First Webinars to Help with the New Tax Law!
January 18: H.R.1: What it Means for the Pass-Through Business: On January 18, from 12:00 to 2:00 pm Central, we will review in detail H.R.1's changes to pass-through business income and possible impacts to business entity planning with Robert Jamison, author of S Corporation Taxation, published by CCH Incorporated. Come join us and bring your questions. For more information or to register, click here.
January 24: So Many Changes! What Tax Practitioners Need to Know for the 2018 Filing Season: We have a new tax law and everything is changing. But, we still have a filing season to get through before the major sections of the law impact returns. On January 24, from 12:00 to 2:00 pm, we will update tax practitioners with what they need to know to get through the 2018 filing season. We will also provide an overview of key provisions of the new tax law practitioners must know to advise clients as 2018 gets underway. This webinar is cosponsored with the Iowa Bar. For more information or to register, click here.
Free Webinars: Annual Iowa Department of Revenue Update for the 2018 Filing Season
The Iowa Department of Revenue will provide their annual update, including a summary of the 2017 Legislative Session and information on electronic W-2/1099 reporting on two different days (same offering each day):
- Thursday, January 11 - Noon to 1 PM
- Friday, January 12 - Noon to 1 PM
To register or for more information, click here. Registration is free. No CPEs will be provided.
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.