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Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
It is now apparent when I wrote my post last week on electing out of deferred sales contracts, that my terminology was not the best. Sometimes when writing these posts, I know what I mean but when transmitting the brain waves to the keyboard, it does not always get put down correctly.
The correction on the post is that a deferred sales contract calls for the delivery and sale of the grain in 2011, however, the payment of the grains sales delivered in 2011 will be deferred til 2012. If your grain sales contract meets this criteria, then you would normally report the grain sales in 2012 since that is when you collected the funds (assuming a cash basis farmer).
However, you may elect out of this installment sale on a contract by contract basis and report the income in 2011 if you so choose.
I am sorry for the confusion.
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