Taxes
If you’re planning to buy farm equipment before the end of the year, here’s a refresher on two tax tools you can use.
The end of the year is closing in. Have you considered new prepaid expense moves? According to Paul Neiffer, farm CPA at CLA Connect, you should.
Secy. Yellen directed the IRS not to use any of the new funding allocated in the reconciliation package to increase the number of audits of Americans making less than $400,000 a year. So, what will the funds be used for?
Farmers Who Gain From Tax Bill Wary of Losing Subsidies Later
Even though the transfer tax might not happen, it is likely we will see major changes in gift taxes.
Up to $12.06 million can be passed to your loved ones upon death, exempt from federal estate tax. While living, you can also gift $16,000 annually to as many individuals as you’d like. Of course, some exceptions apply.
Married and on the farm? If one spouse dies, make sure the surviving spouse works with an adviser to file IRS Form 706 to benefit from any unused federal gift or estate tax exemption. You could save millions.
“We would be taxed on the increased value of our farmland if we’ve held it for over 90 years,” says U.S. Rep. Vicky Hartzler (R-Mo.).
March 1 is often labeled the “Farmer Due Date.” It’s not a due date for tax returns, but it feels like one.
Many farmers looked at transferring assets to the next generation in 2021 via trusts. One trust option to consider is a Spousal Lifetime Access Trust (SLAT).