December 2019
Tax Considerations for 4-H or FFA Activities
We have received several recent questions about tax issues associated with 4-H or FFA activities. This post provides a general review of key requirements to consider.
IRS Issues 2020 Standard Mileage Rates
On December 31, 2019, IRS issued the 2020 Standard Mileage Rates in IRS Notice 2020-05. They have generally decreased from 2019. The business standard mileage rate is 57.5 cents per mile, the amount for medical or moving (when still deductible) is 17 cents per mile, and the amount for charity remains at 14 cents per mile.
IDALS Submits Hemp Plan for Approval
The Iowa Department of Agriculture and Land Stewardship submitted its state plan to the USDA for approval on Dec. 11, 2019. It is not legal to grow, possess, buy or sell hemp in Iowa until the USDA approves the state plan and the Department publishes notice of the approval in the Iowa Administrative Bulletin.
From the Iowa Courts
Following are reviews of cases recently issued by the Iowa Court of Appeals that are relevant to agricultural producers or landowners.
Reviewing Key 2019 Agricultural Law Developments
As we move into 2020, we're dedicating this post to reviewing important agricultural law developments from the past year. Most of these issues continue to evolve, and we look forward to providing updates as they occur. Happy new year!
- Supreme Court Considers Whether Permit Required for Indirect Point Source Pollution
- 2015 Clean Water Rule Repealed / New WOTUS Rule In Progress
- Federal Takings Claims May Now Be Brought Directly to Federal Court
- Hemp Goes Mainstream
- Trade Troubles Trigger Another Year of Market Facilitation Program Payments
- Flooding and Other Natural Disasters Impact Many Farmers
- Chapter 12 Bankruptcy Limit Is Raised
- Affordable Care Act is Threatened by Federal Appeals Court Ruling
- Agricultural States Gird Up Right to Farm Laws
- Iowa’s Agricultural Trespass Law is Challenged
Year End Spending Bill Makes Many Changes to the Tax Code
The $1.4 trillion year-end spending package passed by Congress and signed into law on December 20, 2019, contains a number of provisions impacting taxpayers. The package, including the Consolidated Appropriations Act, 2020, H.R. 1158, and the Further Consolidated Appropriations Act, 2020, HR 1865, will keep the government running through September 2020. An estimated $426 billion (over 10 years) of the legislation is directed to tax provisions.
The final package reflects months of ongoing negotiations, with many long-discussed provisions finding their way into the law and others not making the cut. This post reviews these changes.
Congress Revives More Than 30 Expired Tax Breaks
On December 20, 2019, President Trump signed into law the Further Consolidated Appropriations Act, 2020, HR 1865, part two of a spending bill designed to keep the government running through September 2020. Buried within the law’s 715 pages is a tax package retroactively extending a number of credits and tax breaks that were expired (some for two years) and reviving others that were set to expire. These provisions are included in Division Q of the law, titled the “Certainty and Disaster Tax Relief Act of 2019.’’ This post reviews the revived provisions.
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SECURE Act Changes the Rules for Retirement Planning
On December 20, 2019, President Trump signed into law the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). The SECURE Act makes significant changes to many long-time retirement plan rules. It also repeals the kiddie tax changes implemented by the Tax Cuts and Jobs Act. Highlights of the SECURE Act are detailed in this post.
Fifth Circuit Declares ACA's Individual Mandate Unconstitutional
On December 18, 2019, a divided panel of the United States Court of Appeals for the Fifth Circuit affirmed a Texas district court’s December 2018 decision, ruling that the individual mandate in the Affordable Care Act is unconstitutional in light of changes made by the Tax Cuts and Jobs Act of 2017 (TCJA). Although the district court had ruled that this infirmity rendered the entire ACA unconstitutional, the Fifth Circuit remanded the case for a more precise determination of whether the unconstitutional individual mandate is severable from the ACA as a whole. This post reviews the impact of the case.
Regulations Confirm No Estate Tax Clawback
On November 22, 2019, IRS released TD 9884, finalizing regulations confirming that individuals taking advantage of increased gift and estate tax exclusion amounts in effect from 2018 to 2025 will not be adversely impacted after 2025 when the exclusion amount is scheduled to drop to pre-2018 levels. This post reviews the regulations.
Tax School is Online at TaxPlace
The 46th Annual Federal Income Tax School is availabe online for replay on TaxPlace.