Phyllis Riley

Higher Tax Rates on Land Sales

by Andy Biebl, CPA With the slowdown in farmland appreciation, we may see retired landlords and investors willing to sell. But there is a new barrier; higher capital gain rates. With land sellers now often facing 23 to 25% federal rates plus additional state income taxes, we will see sticker shock and an unwillingness to deal. As we learned coming out of the Reagan era, higher capital gain rates suppress selling activity; lower rates stimulate ownership changes. THE NEW RATES.  Previously, a large gain from the sale of farmland was taxed at a flat 15% federal capital gain rate regardless …

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Court Ruling on CRP Land Puts Question to Self Employment Tax

U. S. Tax Court says non-farmer Texas resident must pay self-employment tax on Conservation Reserve Program land inherited in South Dakota. A non-farmer’s Conservation Reserve Program income can be hit with self-employment tax, said U.S. Tax Court in a ruling last year, which involved a Texas resident who inherited farm land in South Dakota. “Since the late 1980s, the IRS and the courts have issued various rulings, advices, notices and opinions concerning the issue of whether CRP payments are subject to self-employment tax,” says Roger McEowen, Leonard Dolezal Professor of Agricultural Law at Iowa State University. “Until 2003, the IRS …

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Farm Bill Info Session

Clift Land Brokers will sponsor the upcoming 2014 Farm Bill Info Session, Friday, March 21st.  Please plan to attend.