Commodities can be gifted to family members and/or charities. Farm proprietors, partnerships, and corporations can make charitable gifts of unsold commodities. If gifts to any one family member exceed $14,000 for a calendar year, a federal gift tax return must be filed and the gifts in excess of the $14,000 will use a portion of the estate tax exemption.
Kristy discussed the following: when does a tax consequence occurs; what are the advantages of gifting grain; does “Kiddie Tax” apply and if so, when; how does the process work with IRS rules; do you file a W-2 or 1099; and knowing when payment of agricultural labor in commodities is an option.
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