Tax Update: Key Rulings and Cases from the Past Year
This opening session begins with a review of the most significant recent income tax cases, IRS rulings and other tax administrative developments. This session will help you stay on top of the ever-changing interpretations of tax law that impact your clients.
Correcting Depreciation Errors, Bonus Elections and Computations
The TCJA made several changes to bonus depreciation and the IRS issued a Revenue Procedure in 2019 allowing modifications of a bonus election. Final regulations were published in late 2020 that withdrew a "look-through" rule for partnerships and clarify the application of I.R.C. §743(b) adjustments. This session brings tax preparers up-to-date on dealing with changes to bonus elections and related computations as well as correcting depreciation errors in general.
The Taxability of Retailer Reward Programs; Tax Rules Associated with Demolishing Farm Structures
This session addresses the tax issues associated with farm clients receiving "rewards" from retailers that they transact business with. How are the "rewards" to be reported? Is the information that the retailer provides to the farmer correct? This session sorts it out. In addition, this session covers the proper tax treatment of demolishing farm structures. Significant weather events in recent months in large areas of farm country destroyed or significantly damaged many farm structures. When those structured are beyond repair and are demolished, what is the proper way to handle it for tax purposes?
Non-Depreciable Items on the Farm or Ranch
Numerous items on a farm or ranch, or that is owned by a farmer/rancher may not actually be depreciable. This session discusses those unique items and how to handle them on the tax return.
In 2021, the IRS issued guidance on how farm taxpayers are to handle carryback elections related to farm net operating losses (NOLs) in light of all of the legislative rule changes in recent years. This session reviews the guidance and illustrates how a farm taxpayer can elect to not apply certain NOL rules of the CARES Act, and how the COVID-Related Tax Relief Act (CTRA) election can be revoked.
Livestock Confinement Buildings and Self-Employment Tax
Clearly, if a farmer constructs a confinement building, places their own livestock in the building, provides all management and labor, and pays all expenses, the net profit from the activity will be subject to SE tax. But, what if the livestock production activity conducted in the confinement building is done under a contract with a third party? Is the farmer’s net income from the activity subject to SE tax in that situation? This session unravels the details.
Tax Issues Upon Dissolution of an S Corporation
This session looks at the tax (and income tax basis) impact of dissolving an S corporation. An alternative strategy to dissolution of a divisive reorganization will also be examined.
Where's the Line Between Start-Up Expenses, the Conduct of a Trade or Business and Profit Motive? When Can Business Deductions First Be Claimed?
The tax rules differ on whether certain business-related costs are start-up costs or are costs incurred in the active conduct of a trade or business. A key question is when the business begins. This session examines those issues, including a recent Tax Court case on when a web-based business begins.
This concluding session examines several important ag tax topics. Included in the discussion is the self-employment tax treatment of CRP Payments; the early termination of CRP contracts (purchase and sale allocations); and tax planning during drought (weather-related livestock sales; prevented planting payments; and the income tax deferral of crop insurance)
Key Estate and Business Planning Cases and Rulings
This session is a review of the big developments in the courts and with the IRS involving estate planning, business planning and business succession. Stay on top of the issues impacting transition planning for your clients by learning how legal, legislative and administrative developments impact the estate and business planning process.
Tuesday, August 16 | 9:00 - 9:45
The Use of IDGTS (and other strategies) for Succession Planning
Estate planning with intentionally defective grantor trusts (IDGTs) can have many advantages. This session will discuss the ins and outs of IDGTs, including how they may be a part of developing comprehensive estate plans and how they can be tax “effective” for federal estate tax purposes.
Tuesday, August 16 | 10:00 - 10:45
Captive Insurance: What is it and What are the Tax Rules?
Farming and ranching businesses face unique risks and the lure of forms of insurance other than commercial insurance is attractive to many. What are the proper ways to structure captive insurance companies and what are the pitfalls? How does the IRS view captive Insurance? This session addresses these issues.
Tuesday, August 16 | 10:45 - 11:45
Estate Planning with Income Tax Minimization in Mind
This session explores the strategies that minimize tax in the process and implementation of estate and business succession plans. Income tax minimization is of primary importance to most clients given the presently high level of the unified credit applicable exclusion amount, at least through 2025.
Tuesday, August 16 | 12:30 - 1:30
What's Going on in the Farm Economy and the Impact on Tax/Estate Planning
This session provides practitioners with an understanding of the current economic situation facing their farm clients and what the economic projections are in the farm economy for 2023. Gaining insight into ag markets and ag economics can help the practitioner advise the farm client as to current tax, estate and succession planning strategies to minimize economic and financial risk for ag clients.
Tuesday, August 16 | 1:30 - 2:00
Post-Death Basis Increase - The Gallenstein Application
Can surviving spouses in non-community property states get a full basis step-up in jointly held property when the first spouse dies? Gallenstein may still apply for some clients – what are those situations and what does it mean?
Tuesday, August 16 | 2:20 - 2:50
Using a Charitable Remainer Trust to Sell Grain
A retiring farmer usually has no expenses, and the sale of grain will result in maximum income and self-employment tax. Using a charitable remainder trust can eliminate SE tax and reduce income taxes. We will review how the CRT works and provide examples showing how much tax savings can result.
Tuesday, August 16 | 2:50 - 3:30
Using Section 2032A to Reduce Estate Taxes
Farmers can reduce their estate by up to about $1.2 million using Section 2032A. This session will review the requirements to make this election and some the pitfalls associated with making the election.
Tuesday, August 16 | 3:30 - 4:00
Getting Clients Engaged in the Estate/Business Planning Process
In this session, a checklist will be provided designed to assist practitioners in getting clients engaged in the estate, business and succession planning process. What can be done “jump start” the process for clients?