Farm and Finance

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Employee meals/entertainment: These deductions are about to change

The new Tax Cuts and Jobs Act will present tight limits on deductions pertaining to business meals and entertainment. Before this new tax reform, taxpayers generally could deduct at least 50% of expenses for business-related meals and entertainment. However under the new law, entertainment expenses incurred or paid after Dec. 31, 2017 will be classified [...]

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How long should you keep important records and documents?

We are all guilty of it- we don’t take the time to review all of our important records on a regular basis. Before we know it we have file folders stuffed to the brim with documents from many years ago. Piles cover our desks and filing cabinets comprised of papers we are hanging onto because [...]

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Summary of the new tax law and its impact on Ohio agriculture

On Dec. 22, President Donald Trump signed HR 1 into law. This new law implements the most significant changes to our tax code in more than 30 years. This article provides a general overview of some of the provisions that most impact farmers. • Tax Bracket Changes: Most farm businesses are taxed as sole proprietorships, [...]

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Don’t fall victim to cybersecurity attacks

The accountants my firm are invested in all aspects of our clients’ businesses, including the ways their success and security could be threatened. Our team is very focused on cybersecurity measures and we spend a great deal of time studying the methods and motivations of hackers. Most people are only opaquely aware of the threats [...]

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Maneuvering though the Medicare maze

Taxes come into play with more expenses — including healthcare. This month, let’s talk Medicare. Medicare is health insurance for people 65 or older, people under 65 with certain disabilities, and people of any age with End-Stage Renal Disease (ESRD) but it works like no other insurance you have known. Medicare is not a one-size-fits [...]

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Are you aware of qualified charitable distributions?

Let’s switch gears a bit this month and talk about Qualified Charitable Distributions. QCDs are cash donations that can be made by IRA owners and beneficiaries age 70.5 and over to IRS-approved public charities. These donations must come directly out of an IRA account to qualify as a QCD. They are federal income, tax free, [...]

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Cost segregation studies and depreciation deductions

Farm businesses that acquired constructed or made substantial improvements to a building — or did so in previous years — should consider a cost segregation study. Also referred to as a “Cost Seg,” these studies combine accounting and engineering techniques to identify building costs that are properly allocable to tangible personal property rather than real [...]

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Tips for keeping your books straight and business running smoothly

Good financial practices are key to the success of your farming business, but many businesses fail to implement them. Most farm owners know that poor financial management is a major cause of poor business performance and growth, but still fail to carry out the financial tasks that are necessary to keep things running smoothly and [...]

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Drafting and reviewing your buy-sell agreement

If you own a business, you have hopefully established a buy-sell agreement in case you or a co-owner voluntarily or involuntarily leaves the company. The creation of the document is just one step in a larger process. You simply can’t draft the agreement and lock it away for safekeeping. The document should be a fluid [...]

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Steps to take when expanding your business

Many farmers and agribusiness owners want to grow their operations. Growth represents progress, and it can result in financial rewards and new opportunities for owners and employees. But with growth often comes a new set of challenges. This makes it critical to plan your growth initiatives carefully so that growth doesn’t lead to cash flow and other financial problems [...]

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