NEWS
Avoid the Land Trap
Elizabeth Williams DTN Special Correspondent
Thu Oct 31, 2013 02:59 PM CDT

Many farm families incorporated their farm assets in the 1970s and early 1980s following the advice of their accountants. It was supposed to be a way to save taxes and make transition planning to the next generation easier. At the time, it was good advice.

However, since 1986, when Congress changed the corporate tax rules, farm families pay a steep price if they want to take their land out of their C-corporation.

COSTLY TAXES

Corporations do not qualify for capital gains on land held within a C Corporation, so they would pay 35% federal rates on the gain from any ...

Quick View
  • Crop Tech Corner In this week's Crop Tech Corner, a new, faster method of testing soybean cyst nematode samples is...
  • Competing for Dollars Beef has some catching up to do, but there is opportunity ahead.
  • Ask the Taxman by Andy Biebl Readers pose tax questions on how to justify repairs, handle capital gains on a residence and com...
  • Senior Partners - 1 Think how rural communities could rejuvenate if farmland rents stayed local rather than flowing t...
  • $3 Corn Subdues Bids March auctions show cash rent shocks could mount in 2016.
  • Nutrients Ruling A federal appeals court Tuesday ruled that a lower court could not order EPA to make a decision o...
  • West, Texas: 2 Years Later - 1 Two years after the ammonium nitrate explosion at West Fertilizer Co. in West, Texas, state offic...
  • West, Texas: 2 Years Later - 2 While federal and state governments did not mandate more regulations when it comes to storing fer...
  • Ask the Vet The vet says my cow has anaplaz, which I've never heard of before. What is it?
Related News Stories
Ask the Taxman by Andy Biebl
Good Fences Make Good Neighbors
Senior Partners - 2
Grouse Conservation Efforts Touted
Iowa Land Values Take a Hit
Soil Health - 2
$3 Corn Subdues Bids
Senior Partners - 1
Sample With Precision
Farm Program Countdown - 1