Ag-Visors

This article will cover three tax issues that are of concern during 2010, or could affect 2009 income tax returns filed in 2010. The first topic deals with the Make Work Pay Credit. The second topic will discuss the effect of capital gains taxes on sales in 2010 and subsequent years. Finally, I will briefly discuss income tax issues that may arise on property inherited from a person who died in 2010.

As a whole, the agricultural market has endured many changes and it’s been a difficult year for everyone. However, as the saying goes, “what doesn’t kill you only makes you stronger," and 2010 has presented fresh opportunities for growth.

Congress has changed the rules as to how you can convert a traditional IRA into a ROTH IRA for the 2010 tax year. If you own a traditional IRA, sometime this year you will probably be contacted about converting to a ROTH IRA. Under tax law for this year, you have the option of paying the tax due for the IRA in 2011 and 2012.

It is becoming increasingly harder to  handle cattle in today’s environment. The last thing we want is to have the press and the activists come down on us. Well, they already have, between ABC News Nightline with Brian Ross and CBS Evening News with Katie Couric.

Congress has changed the rules as to how you can convert a traditional IRA into a ROTH IRA for the 2010 tax year. If you own a traditional IRA, sometime this year you will probably be contacted about converting to a ROTH IRA. Under tax law for this year, you have the option of paying the tax due for the IRA in 2011 and 2012.

Producers try to manage cattle and resources based on market incentives, but that’s not simple when signals change faster than they can make adjustments. Sometimes it helps to step back and check the flow.

One of the hottest topics online and in the news is animal welfare and rights. My question to you, reader, is, “Have you ever thought about it?” I have, and am, worried about it. One of the biggest questions online with bovine practitioners is “What do we do about it?”

This article addresses the rights of owners of agricultural land when tenants fail to pay their rent. Generally speaking, if a tenant does not pay the entirety of his rent when taking possession of the landlord’s property (the “demised premises”), the landlord is entitled to a “landlord’s lien” against growing or grown crops to secure his rent. Indeed, §441.280 RSMo. states:  “Every landlord shall have a lien upon the crops grown on the demised premises in any year, for the rent that shall accrue for such year…” This lien attaches at the beginning of the tenancy, whether or not the parties have entered into a written lease agreement, and it is enforceable up to the amount of the unpaid rent. 

Saving money on administrative costs, like health care for your family, can make a big difference in how much of your earnings you actually keep. Third party administration companies can help you keep more at tax time. With the help of these third party administrators, now is the perfect time to begin saving valuable tax dollars on your health care expenses.

In all activities that the IRS regards under the hobby loss rule, including livestock and other farming ventures, the issue of one’s personal experience and expertise is an important consideration. In audits, the IRS will ask, among many other things, what expertise you have in conducting this type of venture, and whether you consulted others who are experienced in the industry about the feasibility of making money in the activity.