FARM BUSINESS NEWS
Farm Investors Hit
Marcia Zarley Taylor DTN Executive Editor
Fri Jun 21, 2013 10:46 AM CDT

HADDONFIELD, N. J. (DTN) -- In a surprise reversal of tax policy, the U.S. Tax Court ruled this week that Conservation Reserve Program payments don't equate to cash rent, so even nonfarm landowners who live out of state owe self-employment taxes on such income.

The decision shocked legal scholars and agricultural accountants who for most of the past three decades have advised farm investors that they were exempt from the 15.3% tax if they were not otherwise actively engaged in an agricultural business.

"This is a pretty unfortunate case," said Roger McEowen, an Iowa State University law professor. He believed ...

Quick View
  • Crop Tech Corner Researchers have developed GE wheat that yields far better under hot conditions, a wheat gene is ...
  • The Attraction of Youth Combine genotyping with a yearling bull, or even a weanling, and you're less likely to make a poo...
  • Kubota Steps Up A new mid-range, high-horsepower M7 tractor moves this company into the row-crop arena.
  • SCO Sticker Shock Costs and potential disconnect with county yields make the Supplemental Coverage Option a hard se...
  • Clean Water Goes a Long Way Cleaning up 900 feet of a small creek in Kentucky brings rebirth to water once choked with sedime...
  • Beef Checkoff Effort Resumes Members of the eight organizations comprising the Beef Checkoff Enhancement Working Group were se...
  • Ag and Environment Outlook Agriculture continues to watch how the U.S. Environmental Protection Agency implements the propos...
  • Surgery on Plastics Dharma Kodali's goal is to insert soybean oil in the basic ingredient list for PVC plastics.
  • Ask the Vet How should I treat a cow with a swelling on her flank?
Related News Stories
SCO Sticker Shock
Ask the Taxman by Andy Biebl
Fines for Fringe Benefits
Taxlink by Andy Biebl
Year-End Tax Panic
Barge Tax Faces House Vote
Taxlink by Andy Biebl
Tax Extenders Talk Heats Up
Taxlink by Andy Biebl