Open Access. Powered by Scholars. Published by Universities.®

Agriculture Law Commons

Open Access. Powered by Scholars. Published by Universities.®

1181 Full-Text Articles 839 Authors 189545 Downloads 75 Institutions

All Articles in Agriculture Law

Faceted Search

1181 full-text articles. Page 1 of 26.

Deductible Livestock Costs For Adjusting 2016 Income Tax Returns, Alejandro Plastina 2016 Iowa State University

Deductible Livestock Costs For Adjusting 2016 Income Tax Returns, Alejandro Plastina

Ag Decision Maker Information Files

Estimated deductible costs for use in adjusting farm expenses to exclude the cost of producing home-consumed farm produce.


Type Of Lease For An S Corporation, Neil E. Harl 2016 Iowa State University

Type Of Lease For An S Corporation, Neil E. Harl

Neil E. Harl

Since enactment of the S corporation concept in 1958, it has been important to give careful thought to the kind of lease entered into by S corporations as landowners. In the years since the major amendments to Subchapter S of the Internal Revenue Code in 1982, The type of lease has been less important for some S corporations but it is still a major checklist item for S corporation planning.


Turn Over Of Assets To Creditors, Neil E. Harl 2016 Iowa State University

Turn Over Of Assets To Creditors, Neil E. Harl

Neil E. Harl

From 1983 to 1989, US agricultural debt dropped by about $60 billion as debts were discharged in bankruptcy, obligations were restructured with debt written off and property was deeded back to creditors. The resulting tax consequences created highly significant income tax burdens for debtors and contributed to various proposals for debtor relief from tax liability. However, except for relief from alternative minimum tax liability stemming from capital gains and a new solvent farm debtor rule for discharge of indebtedness, farm and ranch debtors were consigned to working through their debt problems within existing tax law.


Proposed Regulations Issued For Estate "Freezes", Neil E. Harl 2016 Iowa State University

Proposed Regulations Issued For Estate "Freezes", Neil E. Harl

Neil E. Harl

The repeal of I.R.C. § 2036(c) in 1990 as part of the Revenue Reconciliation Act of 1990 was accompanied by enactment of rules shifting estate freezes away from federal estate tax and toward the federal gift tax arena. Proposed regulations have now been issued for the statute, I.R.C. § 2701-2704.


Taxing Agricultural Program Payments, Neil E. Harl 2016 Iowa State University

Taxing Agricultural Program Payments, Neil E. Harl

Neil E. Harl

As a general rule agricultural program payments received in cash or in materials or services are includible in income. The time at which the amounts are received or made available under constructive receipt principles is ordinarily the time the payments are to be included in income. Amounts are "made available" in the year in which farm program payment requirements have been met, regardless of whether an application had been signed to receive final payment. Thus, if federal farm program payments are made available in one year with an option to accept payment in the following year, the amount made available ...


Self-Cancelling Installment Notes, Neil E. Harl 2016 Iowa State University

Self-Cancelling Installment Notes, Neil E. Harl

Neil E. Harl

Until 1980, it was generally believed that an installment contract set up with remaining payments cancelled after the death of the contract seller would be treated as a transfer with a retained life estate. That was sufficient to discourage use of such a concept.


Soil Expenditures, Neil E. Harl 2016 Iowa State University

Soil Expenditures, Neil E. Harl

Neil E. Harl

Historically, expenditures to improve the productivity of soil have been viewed as capital in nature and not deductible. Over the past four decades Congress has acted to make some expenditures deductible if specified conditions are met.


Tax Free Incorporation–Ii, Neil E. Harl 2016 Iowa State University

Tax Free Incorporation–Ii, Neil E. Harl

Neil E. Harl

In the June 8, 1990, issue of Agricultural Law Digest, we discussed a 1989 amendment specifying that, with some exceptions, for transfers after October 2, 1989, debt securities issued as part of a tax free exchange are treated as boot. Gain is recognized to the extent of boot received by the transferor.


Expense Method Depreciation, Neil E. Harl 2016 Iowa State University

Expense Method Depreciation, Neil E. Harl

Neil E. Harl

Recently published proposed regulations to the expense method depreciation rules have provided firm guidance on the position of the Department of the Treasury on several key issues involving the 1986 amendments to the expense method depreciation statute.


Paying Wages In Kind For Agricultural Labor, Neil E. Harl 2016 Iowa State University

Paying Wages In Kind For Agricultural Labor, Neil E. Harl

Neil E. Harl

Beginning in 1990, cash remuneration paid to an agricultural laborer is subject to mandatory income tax withholding. Prior to 1990, employers were not required to withhold federal income tax on wages paid to agricultural labor. However, agricultural employees could, if their employers agreed, choose voluntarily to have income tax withheld from wages. The enactment of mandatory income tax withholding plus the gradual increase in FICA tax (increasing from 7.51 percent of the first $48,000 of wages in 1989 to 7.65 percent of the first $51,300 of wages in 1990) have given added impetus to the payment ...


Pledging Installment Obligations, Neil E. Harl 2016 Iowa State University

Pledging Installment Obligations, Neil E. Harl

Neil E. Harl

For some installment sellers, the installment obligation is viewed as an investment asset and is not pledged or assigned unless financial reverses occur. For others, an installment obligation represents economic value to be enjoyed by pledging or assigning the obligation as collateral on a loan or to secure a financial commitment otherwise. Recent legislation has imposed a far more limiting set of rules on using an installment obligation to secure a further economic advantage.


Payment On Guarantees, Neil E. Harl 2016 Iowa State University

Payment On Guarantees, Neil E. Harl

Neil E. Harl

With the onset of financial and economic trauma in agriculture in the mid 1980s, the matter of loan guarantees assumed greater importance than at any time since the 1930s. In a typical situation, a parent has guaranteed a machinery or livestock loan; if the child is unable to pay as the primary obligor, the parent may be elevated to a position of primary liability. The question then becomes whether the parent as guarantor has a bad debt deduction if the parent makes good on the loan. If the parent does not pay, and instead manages to negotiate a discharge of ...


Private Annuity: Useful Concept Or Troublemaker?, Neil E. Harl 2016 Iowa State University

Private Annuity: Useful Concept Or Troublemaker?, Neil E. Harl

Neil E. Harl

As an estate planning concept, the private annuity is seldom included in formal estate plans but more frequently employed by families acting without professional assistance who are seeking to assure income for so long as the parents live. The private annuity is best known for the problems inherent in its use; however, there are situations where the private annuity can be a useful part of an overall estate plan.


Like-Kind Exchanges: A Popular Option For Property Transfers, Neil Harl 2016 Iowa State University

Like-Kind Exchanges: A Popular Option For Property Transfers, Neil Harl

Neil E. Harl

In the decades since the like-kind exchange provision 1 was enacted, 2 the concept has become popular among property owners. Indeed, the concept has become so popular that calls are being heard for the Internal Revenue Code sections to be limited or even repealed. Those sentiments appear to be driven primarily by concerns over the impacts of like-kind exchanges on land values.


Handling Commodity Credit Corporation Loans, Neil E. Harl 2016 Iowa State University

Handling Commodity Credit Corporation Loans, Neil E. Harl

Neil E. Harl

In recent years, the relatively high rates of participation of farmers in federal farm programs have assured widespread utilization of Commodity Credit Corporation loan programs. CCC loans have, in the case of feed grains, wheat and some other commodities, involved nonrecourse loans as part of the price and income support feature of farm programs. Commodity loans from the Commodity Credit Corporation are nonrecourse loans to the extent the debtor may pay off the loan with a sufficient amount of an eligible commodity having a price support value equal to the outstanding value of the loan. If the loan plus interest ...


Adjusting Basis For Discharged Debt, Neil E. Harl 2016 Iowa State University

Adjusting Basis For Discharged Debt, Neil E. Harl

Neil E. Harl

The final step in handling discharged debt involves the reduction of the basis of the debtor's property or of the debtor's depreciable property if the debtor elects to reduce basis before reducing the other tax attributes. The timing of basis reduction is the same in all instances – basis is reduced at the beginning of the year after the year of debt discharge. The major concern with basis reduction is the order in which the debtor's assets are subject to basis reduction.


Corporate Ownership Of The Farm Residence, Neil E. Harl 2016 Iowa State University

Corporate Ownership Of The Farm Residence, Neil E. Harl

Neil E. Harl

For farmers and ranchers considering incorporating, one of the major questions is whether the farm or ranch residence or residences should be transferred to the newly formed corporation. From an income tax perspective, residential costs are deductible for an unincorporated taxpayer only to the extent of mortgage interest and property taxes and costs associated with business use of the residence such as an office "used regularly and on an exclusive basis" for business purposes.


A Summary Of Provision In The Food, Agriculture, Conservation And Trade Act Of 1990, S. 2830, As Amended By The Agricultural Reconciliation Act Of 1990, Neil E. Harl 2016 Iowa State University

A Summary Of Provision In The Food, Agriculture, Conservation And Trade Act Of 1990, S. 2830, As Amended By The Agricultural Reconciliation Act Of 1990, Neil E. Harl

Neil E. Harl

This is the second part of a two-part summary of the provisions of the 1990 farm bill. The first part appeared in Vol. 1, No. 25, Nov. 9, 1990.


Deducting Interest, Neil E. Harl 2016 Iowa State University

Deducting Interest, Neil E. Harl

Neil E. Harl

In an effort to curb manipulations by taxpayers on the cash method of accounting, and to limit the deduction of non business interest, taxpayers in recent years have been subjected to increasingly stringent limitations on interest deductibility.


Abandonment In Bankruptcy, Neil E. Harl 2016 Iowa State University

Abandonment In Bankruptcy, Neil E. Harl

Neil E. Harl

Bankruptcy is designed to accomplish two objectives — (1) assure fair and equitable treatment of the unsecured creditors (the secured creditors are entitled to payment up to the value of their collateral and beyond that are unsecured creditors) and (2) provide a "fresh start" to the debtor. The concept of abandonment now poses a collision of those two objectives.


Digital Commons powered by bepress