Paul NeifferThe Farm CPA Blogger

Paul Neiffer is an agribusiness CPA and business adviser and specializes in income taxation and accounting services specific to the farm community. This includes succession planning issues and opportunities related to taxes and compliance. Paul writes a monthly tax column for Top Producer and blogs at AgWeb.com. He was raised on a dryland wheat and pea farm in Washington. He recently purchased a 185-acre farm. Driving his cousin’s combine is his idea of a vacation.
Paul Neiffer is an agribusiness CPA and business adviser and specializes in income taxation and accounting services specific to the farm community. This includes succession planning issues and opportunities related to taxes and compliance. Paul writes a monthly tax column for Top Producer and blogs at AgWeb.com. He was raised on a dryland wheat and pea farm in Washington. He recently purchased a 185-acre farm. Driving his cousin’s combine is his idea of a vacation.

Articles By Paul Neiffer

Nov 18, 2019

What About the 9% Reduction

I n yesterday's post we discussed how the new 20% QBI deduction has to be reduced for certain items but forgot to bring in the possible 9% reduction related to cooperative payments. In our post, we discussed how $200,000 of QBI can turn into $62,730. If all of this income
Nov 17, 2019

Turn $200,000 into $62,730

Most farmers assumed that their Section 199A deduction would simply be 20% of their Schedule F income. However, the Final Regulations and the instructions are very firm in stating that your Qualified Business Income is after several deductions that many think would not apply. We surmised that several deductions would
Nov 14, 2019

Updated 2018 Tax Return Data

The IRS releases data on each filing season. The last release for 2018 tax returns was done mid-July 2019. Here are some of the key items: As you can see, some interesting trends have occurred due to tax reform. For example, there were about 4 million taxpayers owing AMT tax
Tax forms
Nov 13, 2019

Paul Neiffer: Help, I Have An Ugly Return!

The current tax law makes trading in farm machinery a taxable event. Here's what to know.
Nov 07, 2019

Year-End Tax Planning Webinar

CLA will be presenting a year-end farm tax webinar on Thursday December 5, 2019 at 1 pm Central Time. Rod Mauszycki and myself will be doing the webinar. Our plan is to review what we have learned about tax reform and how it will apply to your year-end tax planning.
Nov 06, 2019

Updates on a Few Posts

We have received a few comments regarding yesterday's post regarding why the gain reported would not be taxed as capital gains. Remember in the example, the farmer is showing this as a hedging transaction. If the farmer treats it as a hedge and later the IRS determines it is not
Nov 05, 2019

Sell the Grain - Buy the Board

A reader sent us an email regarding hedging/speculation. A common scenario is a farmer will sell their crop since they either don't have storage available or do not want to pay for storage and then "repurchase" the crop in the futures market. This is fairly long comment from the reader,
Nov 03, 2019

Farm Bill Decision Tool is Available

Two schools have received funds from USDA to develop a Farm Bill Decision tool - Texas A&M and University of Illinois. The first one available is from Texas A&M and here is my comments on the tool (We will comment on the U of I tool as it becomes available):
Oct 31, 2019

Banking and Hemp

We got the following comment as a result of yesterday's blog post: " My banker informed me that if any of their customers are growing hemp, that they will close all their accounts." That sentiment is still out there for many banks. However, I must admit if I had a