The non-farm economy is humming along very well. A record stock market, near full employment, low inflation and low interest rates all contribute to a sense of optimism about 2018 and beyond. But the farm economy is a different story. This is the push-pull phase of the farm economy. Many producers are in great financial shape and want to push ahead with new expansion plans because they see great opportunities ahead. At the same time a smaller number of producers are struggling with high debt levels, low earnings, and declining equity. 2018 could be the most challenging year of the great farm economic correction.
Audience members will gain a better insight into the financial pressures faced by producers.
The accounting profession will gain insight into how they can assist their customers during this period of economic difficulty.
Moving from a strict service provider to a solutions provider will be encouraged.
Information about the state of the next Farm Bill will be provided.
In many sectors of the agricultural economy, the financial condition for producers remains difficult. This can present unique issues for tax practitioners. This session covers various tax issues associated with clients in financial distress. Form 982 attributes, insolvency, bankruptcy tax issues, and tax issues associated with the sale of farm/ranch assets will be addressed.
By the end of this session, you should be able to:
Identify tax issues unique to clients that are in financial distress
Apply tax planning opportunities to avoid additional tax problems for such clients
Roger McEowen, JD, Kansas Farm Bureau Professor of Agricultural Law and Taxation, Washburn University School of Law
Attend this session to learn how agricultural enterprises might be structured to take advantage of the changing landscape under tax reform. Compare the results of the 21% tax on C corporations to the benefits of Section 199A, the qualified business income deduction.
By the end of this session, the attendee should be able to:
Understand and compare the taxation of C corporation and non-C corporation farming activities
Recognize the nuances associated with entity structuring, such as the deductibility of state income taxes, the effect of nondeductible expenses and limitations associated with the Section 199A deduction.
QBIA, wage limitation, excess business losses, interest expense limitations: where is the simplicity in the Tax Cuts and Jobs Act promised to us? Agricultural taxation is now more complex than ever. Attend this session for the most up-to-date information from the Vice-Chair of the AICPA Tax Executive Committee, who happens to be a national speaker on agricultural tax matters.
By the end of this session, the participant will have:
Gained an appreciation for the complexity of the Section 199A deduction for qualified business income, including the many limitations that reduce its effectiveness.
Understand which farmers and producers are not subject to preproductive cost capitalization, interest deduction limitations and wage restrictions on the deductibility of expenses.
This session will discuss the value of financial benchmarking for agricultural operations. We will take a look at benchmark data from FINBIN, the largest public database in the country. Whole farm, crop and dairy performance will be reviewed. In addition, we will discuss some of the challenges in benchmarking financial information.
Understand the value of financial benchmarking for agricultural operations.
Understand some of the challenges of financial benchmarking.
Recognize the variability in producer performance and understand some of the factors that contribute to it.