September is Just Around the Corner!
On Thursday, September 21, we will hold our annual Agricultural Law Seminar, cosponsored by the Agricultural Section of the Iowa State Bar Association and Iowa Farm Bureau. This seminar will address key issues clients face during uncertain financial times, as well as other timely topics. On Friday, September 22, we will host our Agricultural Business and Tax Planning Seminar. This session will address in-depth entity planning issues and key mistakes made by farm estate planners. For more information or to register, click here.
Damages Awarded to Farmer for Breach of Manure Easement Agreement
The Iowa Court of Appeals recently interpreted a manure easement agreement and agreed that a farmer was entitled to damages for a hog facility’s breach of the agreement. To continue reading, click here.
Iowa Court Analyzes Breach of Contract Damages
The Iowa Court of Appeals recently decided a case that well illustrates how contractual damages are to be calculated: the non-breaching party is generally entitled to be placed in as good a position as he or she would have occupied had the contract not been breached, nothing more, nothing less. To continue reading, click here.
Additional Syngenta Trials Scheduled in Kansas MDL
With the ink barely dry on the $217.7 million Kansas class verdict, Judge Lungstrum has set forth the plan for trying the additional class claims comprising the Kansas multi-district litigation. To continue reading, click here.
Deducting Farm Expenses: An Overview
Farmers, like other business owners, may deduct “ordinary and necessary expenses paid . . . in carrying on any trade or business.” IRC § 162. In agriculture, these ordinary and necessary expenses include car and truck expenses, fertilizer, seed, rent, insurance, fuel, and other costs of operating a farm. Schedule F itemizes many of these expenses in Part II. Those properly deductible expenses not separately listed on the Form are reported on line 32. Following is an overview of key expense deductions for farmers.
Car and Truck Expenses. Farmers, like other business owners, have the option to either (1) deduct the actual cost of operating a truck or car in their business or (2) deduct the standard mileage rate for each mile of business use.
To continue reading, click here.
Reporting Farm Income: An Overview
Preparing tax returns for farmers and ranchers requires specialized knowledge of tax rules and provisions that apply only to those in the business of farming. Individuals, partnerships, and trusts and estates generally report farm income and expenses on Form 1040, Schedule F. Taxpayers use this form to calculate net gain or loss from farming. Gains or losses from the sale of farm assets are usually reported on Form 4797.
Whether income is “farm income” depends upon the operations being conducted and the activities of the person conducting it. Different definitions of farming apply to different tax provisions. This article highlights key rules for reporting farm income.
For tax purposes generally, all individuals, partnerships, or corporations that cultivate, operate, or manage farms for gain or profit, either as owners or tenants, are farmers. Treas. Reg. §1.61-4(d). Income derived from these activities is “farm income” reported on Schedule F. The term “farm” “embraces the farm in the ordinarily accepted sense,” and includes stock, dairy, poultry, fruit, truck farms, plantations, ranches, and all land used for farming operations.
To continue reading, click here.
Iowa Supreme Court Says Drainage District Cannot Enforce 40-Year-Old Injunction
On June 30, 2017, the Iowa Supreme Court ruled that a 1977 injunction requiring a railway company to rebuild a dike, expired under a 20-year limitations period set forth in Iowa Code § 614.1(6). Consequently, a drainage district’s action seeking to enforce that injunction was dismissed.
The case arose because of ongoing drainage problems created by a railroad bridge constructed in 1872. The bridge allows railroad tracks to pass over Whiskey Creek in Louisa County. During heavy rains, sediment and debris has long plugged the channel under the bridge, causing water to flood and damage fields to the north of the bridge. Although railway companies responsible for the bridge originally built a dike to solve the problem, the dike has repeatedly failed. To continue reading, click 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 firstname.lastname@example.org or (515) 294-5217. You can also give online with a credit card. We thank you for your generous support.
Proposed Valuation Discount Regulations on List for Revision or Repeal
On April 21, 2017, President Trump issued Executive Order 13789, directing the Secretary of the Treasury to review all significant tax regulations issued on or after January 1, 2016, and determine which ones (1) impose an undue financial burden on U.S. taxpayers, (2) add undue complexity to the Federal Tax laws or (3) exceed the statutory authority of the IRS.
On July 7, 2017, IRS Notice 2017-38 identified eight (out of 105) regulations that meet this criteria. Included on the list were Proposed Regulations under Section 2704 on Restrictions on Liquidation of an Interest for Estate, Gift and Generation-Skipping Transfer Taxes (REG-163113-02; 81 F.R. 51413). To continue reading, click here.
TaxPlace is Full of Replay Options
July 20, 2017 Seminar Replay - S Corporation Taxation Course - Chapter 1 - Elections and Eligibility for S Corp Status (all sessions from our July 20--21 S Corporation Taxation Course are available for replay on TaxPlace)
July 19, 2017 The Scoop - July 19, 2017
July 18, 2017 Applicable Federal Rates (AFRs): August 2017
July 13, 2017 Webinar Replay - Form 1099 Miscellaneous Preparation
July 7, 2017 Webinar Replay - Part 2 – Net Operating Losses
July 6, 2017 Webinar Replay - Part 1 - Net Operating Losses
July 5, 2017 The Scoop - July 5, 2017
Check out these upcoming August webinars:
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.