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
  • Enlist Cotton Approved USDA has made its final decision to deregulate Dow AgroScience's Enlist cotton trait, which means...
  • Market Moves Weaning and preconditioning top the list of aggravating and expensive chores for most ranchers. C...
  • Ask The Mechanic Ask the Mechanic answers the question about how VW and German engineering was able to get by with...
  • Senior Partners - 4 Except for family sales, seller financing virtually vanished after the farm crisis of the 1980s w...
  • PNW Ag Hit by Historic Drought In addition to problems with the Northwestern wheat crop, cattle are also being adversely affecte...
  • RFS Deadline Nears With the deadline to file comments on the proposed Renewable Fuel Standard volumes to strike at m...
  • Woodbury: Farm Family Business Agendas don't always lead to immediate decisions, but can still cement your family unity.
  • Multi-Year Losses Spur Concern The recent price rally offered growers a welcome opportunity to price 2014 and 2015 crops, but it...
  • Ask the Vet The vet says my calf had Mannheimia. What is that?
Related News Stories
Senior Partners - 4
Senate Panel OKs Tax-Extenders Bill
Taxlink by Andy Biebl
Taxlink by Andy Biebl
Ask the Taxman by Andy Biebl
Taxlink by Andy Biebl
Ask the Taxman by Andy Biebl
Taxlink by Andy Biebl