Paul NeifferThe Farm CPA Blogger

Paul Neiffer is an agribusiness CPA and business adviser and specializes in income taxation and accounting services specific to the farm community. This includes succession planning issues and opportunities related to taxes and compliance. Paul writes a monthly tax column for Top Producer and blogs at AgWeb.com. He was raised on a dryland wheat and pea farm in Washington. He recently purchased a 185-acre farm. Driving his cousin’s combine is his idea of a vacation.
Paul Neiffer is an agribusiness CPA and business adviser and specializes in income taxation and accounting services specific to the farm community. This includes succession planning issues and opportunities related to taxes and compliance. Paul writes a monthly tax column for Top Producer and blogs at AgWeb.com. He was raised on a dryland wheat and pea farm in Washington. He recently purchased a 185-acre farm. Driving his cousin’s combine is his idea of a vacation.

Articles By Paul Neiffer

Mar 26, 2019

When is Guidance Coming?

There are at least two farm specific parts of Tax Reform that we are still waiting for guidance from the IRS. First, we need guidance for those farmers who sell to a cooperative. As part of the "grain glitch fix", the Code provided a transition adjustment for cooperatives with fiscal
Mar 18, 2019

LLC Equal Flexibility

As farming becomes more capital intensive, the requirement to bring in outside capital to fund those needs grows. However, outside capital wants to have both a return on their money and be protected from outside creditors. In the past, corporations were required to meet these needs. However, the advent of
Mar 14, 2019

ARC or PLC - Which to Choose?

The 2018 Farm Bill essentially extended ARC-CO and PLC through 2023. One nice major change is that farmers can now switch between ARC and PLC starting with the 2021 crop (you are locked in for 2019 and 2020 but have until September 1 to make final 2019 decision). I originally
Mar 06, 2019

Do You Know Your Deferred Tax Number?

Farmers have the unique ability to defer their income tax liability down the road for many years. However, over time, this number can build up and if adequate planning is not done, the final tax hit in year of retirement can be substantial. A farmer who plans for this and
Feb 28, 2019

It's Official - March 1 is Now April 15

The IRS released today an announcement that farmers now have until April 15, 2019 to prepare their federal income tax returns. The reasoning as expected was the lack of clarity on filing a farmer's return especially if they receive payments from a cooperative. Quoting the announcement: " Due to certain
Feb 24, 2019

Will March 1 Filing Date Get Extended?

Many farmers typically file their return by March 1. In that case, as long as they file AND pay the tax by that date, there is no requirement for paying an estimated tax payment on January 15. The IRS extended this due date about 5 years ago when an Tax
Feb 20, 2019

Help - Where do I Put all of These Deductions?

Many cooperatives this year (especially processing cooperatives) are pushing out both a Section 199 and 199A Domestic Production Activities Deduction (DPAD). We have gotten several emails and comments regarding where to include these deductions on your tax return. First, if you receive a Section 199 DPAD (as part of the
Feb 20, 2019

Is it Net or Gross?

I am actually going to start off this blog post with a promotion for CLA's Farm Tax Network (FTN). This is an email based subscription service that provides key white papers on various subjects related to farm taxation. It is much more detailed than what this blog can do and
Feb 14, 2019

Some Q & A on Section 199A

We have gotten multiple comments on the blog over the last few weeks on Section 199A. I am using today's blog post as a simple Q & A in answering some of these comments. I assume that we would limit the amount we reduce QBI by to the amount we