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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

Aug 20, 2019

What are your Social Security Bend Points?

Warning, this is a longer post than normal, but I think it important information for everyone, not just farmers facing retirement. As farmers start to approach retirement age, many will ask how much extra self-employment or wage income should they report in order to "maximize" their social security benefits. The
Aug 18, 2019

Can You Defer RP Crop Insurance Proceeds?

Most farmers assume they can defer crop insurance proceeds to the following year. However, there are several rules that must be followed and the IRS has some 'unofficial" guidance that we disagree with. The farmer must be on the cash method of accounting (almost all are). The farmer's history is
Aug 15, 2019

Should You Gift Some Land Now

Tax Reform doubled the lifetime estate and gift exemption for years 2018-2025. This means that in 2019, you can gift during lifetime or have assets in your estate of $11.4 million and not owe any estate or gift tax. Your spouse has the same amount. For many farm couples, they
Aug 11, 2019

Why is a GP not an Entity

We are getting quite a few questions regarding "entity" with the release of Market Facilitation Program (MFP) #2 details. In round 2 of MFP, farmers are allowed to receive up to $500,000 in payments per entity / per person. It is $250,000 for covered crops (such as corn, wheat, beans,
Aug 08, 2019

Date of Disaster is Key

The Disaster Aid Bill passed in June contains aid to farmers who incurred crop and livestock losses related to natural disasters. The key disasters listed in the Bill were: Hurricanes that occurred last summer/fall that hit the Southeast with a lot of crop damage (and some livestock damage), and Missouri
Aug 01, 2019

Paul Neiffer: Should You Consider a C Corporation?

Tax reform made several changes to the tax rules about businesses operating as a C corporation. Let’s take a look at the pros and cons of this option for your farm operation.
Jul 29, 2019

One Method of Calculating MFP Payments

Since I had some spare time this afternoon, I decided to calculate MFP payments for Iowa based upon an estimated average corn and soybean payment. I took the average yields for corn and soybeans for 2014-2017 (I did not have the 2018 data handy) and plugged in estimated rates for
Jul 29, 2019

A Potpourri of Items

Today's blog post will simply be an update of some items that have arisen over the last few weeks. First, the IRS just announced that they are finally eliminating the new "postcard" Form 1040. We have certainly struggled with this new form. The goal was good but when you go
Jul 25, 2019

MFP Payments Announced Today - Here are Key Provisions

The USDA announced a lot more details on MFP today. Here are the key takeaways from the announcement: For the non-specialty crops such as corn, wheat, soybeans, etc. there will be a "county average" price paid based upon the number of acres that a producer planted for the 2019 crop.