Thanks for your article on exit strategies for farming (June Taxlink "Minimizing Taxes Takes a Plan"). This is my last year farming. I am currently working with a foundation for disposal of my machinery which otherwise would have triggered $1 million in income taxes. My question relates to gifts of grain donated to a Charitable Remainder Annuity Trust. Does it have to be year-old grain with zero basis or can it be current grain?
Good news: When the transfer of inventory is to a charity, current-year unsold grain can be transferred, as well as prior-year grain. There is ...