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2000

Agricultural Law Digest

Articles 31 - 48 of 48

Full-Text Articles in Law

The Hidden Tax Traps In Abandonments, Neil Harl Apr 2000

The Hidden Tax Traps In Abandonments, Neil Harl

Agricultural Law Digest

Abandonments in bankruptcy have been a serious problem for debtors for several years. Eighth and Ninth Circuit Courts of Appeal decisions have established the “deflection” theory as the governing rule on abandonments. Under that theory, the debtor bears the income tax consequences on abandoned property as the creditor takes the property to satisfy the debt. That approach has been criticized as inequitable and as an interference with the debtor’s fresh start. However, the deflection theory is made even more painful for the debtor by the fact that the debt on abandoned assets has been characterized as nonrecourse debt. That ...


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Apr 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Apr 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.


Rolling Over Lines Of Credit, Neil Harl Apr 2000

Rolling Over Lines Of Credit, Neil Harl

Agricultural Law Digest

Difficult times in the agricultural sector inevitably lead to unpaid lines of credit at year-end with credit line balances often rolled over into the following year's line of credit. One important question is how the rollover is treated for income tax purposes.


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Mar 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.


Trust Assets And 15-Year Year Installment Payment Of Federal Estate Tax, Neil Harl Mar 2000

Trust Assets And 15-Year Year Installment Payment Of Federal Estate Tax, Neil Harl

Agricultural Law Digest

It's been clear for several years that trust ownership of assets would not necessarily preclude eligibility for 15-year installment payment of federal estate tax. A private letter ruling in late 1999 has provided some guidance on the issue of eligibility for a revocable living trust (a grantor trust) where the assets of the trust are used in the decedent's business.


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Mar 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.


Big News On Crp Payments: Wuebker Reversed, Neil Harl Mar 2000

Big News On Crp Payments: Wuebker Reversed, Neil Harl

Agricultural Law Digest

The long-awaited appellate decision in Wuebker v. Commissioner was handed down on March 3, 2000 by the Sixth Circuit Court of Appeals. The Sixth Court reversed the Tax Court and held that Conservation Reserve Program (CRP) payments are subject to self-employment tax if the taxpayer is carrying on a trade or business and the CRP land bears a “direct nexus” relationship to the trade or business of farming or ranching.


Recharacterization Of Income: Treacherous Rules, Neil Harl Mar 2000

Recharacterization Of Income: Treacherous Rules, Neil Harl

Agricultural Law Digest

In 1986, Congress enacted the passive loss rules barring the deduction of passive trade or business losses to the extent deductions exceed income from all passive activities (exclusive of portfolio income) against other income. It was widely agreed that the limits on deductibility of passive losses would be met by attempts to generate passive income to absorb the passive losses. As a consequence, the Department of the Treasury used its rule making power to identify specific income areas which would produce non-passive income.


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Mar 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Feb 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.


Co-Ownership Discounts: A New Direction?, Neil Harl Feb 2000

Co-Ownership Discounts: A New Direction?, Neil Harl

Agricultural Law Digest

A pair of U.S. Tax Court cases, decided exactly one week apart, have raised questions whether the Tax Court is moving toward the Internal Revenue Service position on co-ownership discounts or whether the court is adopting a more complex and sophisticated approach to co-ownership discounts. The questions may be answered on appeal (both cases are appealable to the Ninth Circuit Court of Appeal) or from additional cases decided by the Tax Court. The outcome is highly important to farm and ranch taxpayers.


Family Limited Partnerships, Neil Harl Feb 2000

Family Limited Partnerships, Neil Harl

Agricultural Law Digest

In recent years, family limited partnerships have gained in popularity for various reasons. Much of the popularity has stemmed from perceptions that substantial discounts could be obtained. That feature has drawn the interest of the Internal Revenue Service and has resulted in targeting of family limited partnerships as a tax abuse area. Regulations have been proposed disallowing valuation at less than fair market value.


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Feb 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Jan 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.


New Limits On Installment Reporting, Neil Harl Jan 2000

New Limits On Installment Reporting, Neil Harl

Agricultural Law Digest

With little advance notice or fanfare, the Congress in late 1999 narrowed substantially the scope of installment reporting of gain. The amendment was the most substantive change in installment reporting since the Installment Sales Act of 1980, enacted nearly 20 years ago.


Handling Shared Appreciation Mortgages, Neil Harl Jan 2000

Handling Shared Appreciation Mortgages, Neil Harl

Agricultural Law Digest

The Agricultural Credit Act of 1987 authorized shared appreciation agreements (up to 10 years in duration) for debt structurings. The appreciation recapture was set at 75 percent of any appreciation in fair market value of the collateral if, within four years, the loan is paid off, the borrower ceases farming or the borrower transfers the property. The borrower pays 50 percent of any appreciation if the triggering event occurs after four years or, if not, upon termination of the agreement (up to 10 years). Currently, more than 11,900 shared appreciation agreements have been executed on debt write-down of over ...


Cases, Regulations And Statutes, Robert P. Achenbach Jr. Jan 2000

Cases, Regulations And Statutes, Robert P. Achenbach Jr.

Agricultural Law Digest

No abstract provided.