Farm and Finance

money

Navigating intrafamily loans

If a relative needs financial help, offering an intrafamily loan might seem like the most gracious route to take. But, if not handled properly, such loans can carry substantial negative tax consequences — such as unexpected taxable income, gift tax or both. Here are some things to ponder before lending a helping hand: 1.      Everything [...]

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Case IH Is the First Original Equipment Manufacturer to Offer a Proprietary Cellular

Prepaying farm expenses as a tax planning tool

Farmers typically pay for seed, fertilizer, and other inputs in one year and use the items in the subsequent year. There are many reasons to do so, such as: obtaining a lower purchase price, guarantee the availability of the particular item, and of course for tax planning purposes. Typically larger farmers can spend tens of [...]

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The many reasons to invest in a business valuation

A business valuation is an investment most business owners should consider making. A business valuation is a procedure that is performed in order to evaluate your operation and then determine its estimated economic value. This service is carried out by a certified public accountant that holds the credential that positions them to gage the value [...]

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The top five reasons to outsource your payroll

Payroll… it is a task that sneaks up on you, and as soon as you take care of it, it seems like it is time to do it all over again. No matter what the industry or how large the operation, many business owners find it advantageous to rely on an outsourced accountant to cut [...]

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Estate planning for farmers: Providing for liquidity concerns

To this day the old adage “….nothing in this world can said to be certain, except death and taxes” is quite true. However, many decades after Benjamin Franklin made the quote, estate planning was formed to proactively solve and minimize the “tax certainty” part of the quotation. Farmers are basically businessman who own and operate [...]

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When to call an accountant: Know the signs

Outside help of any type can be hard for any business owner to weave into day-to-day operations. The thought of sharing business practices and financial information with outside service providers is an unsettling one to many. However, the day usually arrives when partnering with others to lighten your load is the right thing to do. In [...]

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Crop-share rental arrangements and self-employment considerations

Often, farmers and other landowners enter into crop-share arrangements for the rental of their land. The rent landlords receive in this kind of arrangement is based on a share of the crop or livestock produced on the land. Rental income derived from real estate is generally not subject to self-employment (SE) tax. However, an exception [...]

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money

Good-bye spreadsheets, hello accounting software

The team at our firm sees it often — farmers and business owners using Excel to track the finances related to their operation. While it’s true that Excel is very sophisticated and most users know enough to be dangerous while maneuvering through the software, you simply can’t erase the chance for human error. Spreadsheets are [...]

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Options on how to treat livestock sales due to adverse weather conditions

This article is a follow up to last month’s Crop Insurance Deferral  Considerations as we now turn our attention to options available should farmers find themselves in the unfortunate situation of having to sell livestock due to extreme weather conditions. Livestock sold due to weather related conditions Farmers forced to sell livestock early to floods, [...]

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Case IH Is the First Original Equipment Manufacturer to Offer a Proprietary Cellular

Crop insurance deferral considerations

As I have stated in other articles, weather here in Ohio can be quite fickle. While certain areas flourish, other areas can have poor production or be deemed disaster areas. Those not so lucky may have received crop insurance proceeds in 2015. If you did receive crop insurance proceeds, before you file your return, you [...]

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