CLA has a very large team dedicated to providing services to financial institutions across the country including Ag focused banks. That team recently posted a blog post on how Ag Banks are being given guidance by the FDIC on their Ag Loans and how Ag Banks should respond during 2020.
On another note, we got the following comment from a reader:
“So, farmer nets $15000 profit and wife has other, non-farm income for $50,000. Then, on a MFJ return...is it even a farm return? Sounds like it’s not a farm return...just a 1040 with a Sch F on it.”
In order to be a farmer return that qualifies to file and pay by March 1 and not have to pay any estimated tax payment requires that at least two-thirds of total “gross” income is from farming. It is not based on net income as in the comment.
As long as the gross income is at least $100,000 in the reader’s comment, they would qualify as a farmer. However, remember as we have previously posted, gains from trading in or selling farm equipment does not qualify as farm income.
