Farm Bankruptcy and Financial Distress Issues for the Tax Professional

This webinar will cover key tax issues arising when a farmer faces financial distress and/or bankruptcy.

  • Introduce Case Study 
    • What are the problems our producer is facing?
      •       Who are the players involved?
      •        Livestock, land, and machinery
      •        Working with the debtor to conduct an Inventory, consider basis, determine debt (How to determine the true financial picture)
  • What are the tax implications of various options?
  • Partial or full Liquidation (sell property to pay debt)
    • 1245 recapture, 1231 gain
  • Foreclosure/Repossession
    • Recourse v. nonrecourse debt
  • Discharge of Indebtedness (an introduction to section 108)
    • What creates COD, what does not count
      • Purchase price reductions
      • Deductible debt
    • Exclusions
      • Insolvency
      • Principal Residence
      • Qualified Farm Indebtedness  
      • Bankruptcy
  • When does bankruptcy become an option?
  • Chapter 7, 11, 12
      • Limitations and Considerations (Feasibility)
        • Increased debt limit, still an issue
  • The exempt homestead
  • Entity Considerations in a bankruptcy
  • Discharge – What does that mean?
  • Tie case study facts back to bankruptcy…what facts would cause bankruptcy to be an option?
  • Tax advantages of Chapter 12 / timing considerations
    • Impact of section1232  
  • What is a tax professional’s role in a bankruptcy?
  • How can the tax professional get compensated?
  • What are the tax consequences of COD exclusions, including bankruptcy?
  • How is discharged debt reported to the taxpayer?
    • 1099-C, 1099-A,
  • Ordering Rules for handling reduction of indebtedness income
  • Tax Attributes
  • Basis Reduction  
  • How does the debtor report?
    • Form 982
  • Q & A

We hope you'll join us!

Continuing Education: 

  • 3 hours CPE (tax topics) - Y7WRM-T-00302-20-O
  • 2.5 hours Iowa CLE
  • Level: Basic to Intermediate

Kristine Tidgren
Kristine Tidgren is an adjunct assistant professor in the Agricultural Education & Studies Department and the director for the Center for Agricultural Law and Taxation. Kristine’s work focuses on studying and interpreting laws impacting the agricultural industry. In particular, she focuses on agricultural taxation. Since joining CALT in 2013, Kristine has written hundreds of articles and blogposts to keep tax professionals, practicing attorneys, producers, and agribusiness professionals informed about legal developments impacting their business. She also writes technical chapters for the National Income Tax Workbook and regular articles for farm publications. In addition to her writing, Kristine speaks to many professionals and producers each year regarding tax and agricultural law topics. She also plans and provides instruction for CALT-hosted seminars, including the annual federal income tax schools. Kristine is licensed to practice law in Iowa and Missouri and is a member of the Iowa Bar Association.

Donald L. Swanson
Donald L. Swanson is an attorney with the Koley Jessen law firm of Omaha, Nebraska, and has been practicing bankruptcy law since 1980.  As to Don’s agriculture background, he grew up on a livestock farm in Nebraska’s Sandhills, became Nebraska State FFA President (1973-74) and achieved FFA’s “American Farmer Degree.” During the 1980s Farm Crisis, Don represented debtors in more than forty Chapter 12 cases, achieving a confirmed plan and discharge in all but one. In recent years, Don achieved a confirmed Chapter 11 plan for an Iowa farmer. In Delaware’s $1.5 billion ethanol bankruptcy (In re VeraSun), Don held an ex officio seat on the Official Creditors Committee as counsel for the Ad Hoc Committee of grain suppliers.  Don publishes a blog on bankruptcy and mediation at

Guido van der Hoeven
Guido van der Hoeven is an agricultural tax specialist with the Center for Agricultural Law and Taxation. Prior to this role he was an Extension Specialist/ Senior Lecturer in the Department of Agricultural and Resource Economics at North Carolina State University in Raleigh, North Carolina. Guido’s extension experience includes income taxation of individuals and business entities, farm business management and the profitable continuation of "family firms" to succeeding generations. Van der Hoeven is an Enrolled Agent and presents income tax educational programming across the United States. He has over 40 years of experience in taxation with a focus on farming and natural resources issues. Van der Hoeven is President of the Land Grant University Tax Education Foundation, Inc. which publishes a ~700 page text for income tax training of professional tax practitioners.




Cost is $120.

Date and Time: 
Thursday, August 6, 2020 - 12:00pm to 2:30pm