Ask the Taxman

Farmers must understand tax implications when paying workers as employees, independent contractors, partners or H-2A workers to avoid costly mistakes.

The IRS's dirty dozen tax scams list highlights social media risks and misleading advice. Farmers should be wary of false fuel tax claims, phishing scams, and fake charities and seek information from reputable sources to avoid costly mistakes.

The SECURE Act 2.0 changed IRA rules affecting the required minimum distribution age, penalties and beneficiary options. Understanding these updates is crucial for retirement planning.

Although bankruptcy has a stigma surrounding it, it allows the farm to restructure and continue operations.

No matter how much gross revenue a farm generates, if it consistently loses money, you run the risk of being classified as a hobby.

It is important to follow government and IRS reporting requirements. A little time and effort can prevent issues down the road.

As more farmers look to futures markets to reduce risk, there are two techniques they can use: hedging and speculation. There are positives and negatives, and tax implications, to each technique.

In addition to federal programs, most states offer incentives to businesses such as agriculture.

Is paying self-employment tax bad? There are consequences when avoiding self-employment tax, and some self-employment tax is good.

Split-interest land purchases are making a comeback because of economics and estate planning. While there could be issues, it might be worthwhile to look into them.

There are concerns that the largest farms get most of the subsidies, those that need payments are left out and those not active in farms are benefiting from payments.

It's been another year of extreme weather. The IRS has special provisions that relate to weather-related damages in agriculture.

In agriculture, it's assumed that anything farm-related will qualify for a farm sales tax exemption. Unfortunately, that isn't always the case.

Tax scams are commonplace now. To raise awareness, the IRS recently published its "dirty dozen" tax scams for 2023.

Exiting farming can involve many scenarios. If you farm as a sole proprietor, it's relatively easy. However, in many cases, family members farm together, which may add complexity (and taxes).

DTN Tax Columnist Rod Mauszycki explains residual soil fertility, why it has become popular and how it can affect your taxes and bottom line.

Be aware of the complex rules for depreciating farm business vehicles.

A cash balance plan can be a great tool for exit planning. But there can be some drawbacks.

When getting equipment, your choices are to purchase or lease. There are a few factors to consider when determining which is better financially and tax-wise.

DTN Tax Columnist Rod Mauszycki discusses a few tax issues that affect co-op patrons.