FARM SUCCESSION PLANNING + WHERE TO START?

FARM SUCCESSION PLANNING + WHERE TO START?

 

LUTZ BUSINESS INSIGHTS

 

FARM SUCCESSION PLANNING

farm succession planning + where to start?

curtis thompson, tax director

 

Farm succession planning can be intimidating but knowing what areas to focus on will help ease the process. Keep in mind there is no one-size-fits-all plan, and it will evolve over time. Multiple factors will determine how your succession plan will look.

Building a team to help you with succession planning is essential. This team should include your attorney, tax professional, financial advisor, and insurance agent at minimum. Open communication between your team and your heirs is a must to make the plan successful. Here are a few areas to consider when thinking about your succession plan.

 

1. Equipment

When starting to look at transitioning the farm’s operations, there are multiple things to consider. Equipment is usually one of the first steps to think through. There are several ways to accomplish a successful transition of equipment.

Option 1

The first option is an outright purchase of the equipment either on an installment sale or a lump sum.

Option 2

The second option would be as the equipment is traded, the successor would pay the boot or trade difference. With this option, the successor could own the new piece of equipment outright by buying out the original piece of equipment, or the new piece of equipment could be partially owned by each based upon trade value and the amount of boot paid.

Option 3

The third option would be to have the successor lease the equipment. The lease could include a buy-out at the end.

Option 4

The fourth and final option would be to gift the equipment to the successor.

Each option has its own tax implications, so please consult with your tax professional before deciding which would be best for your operation.

 

2. Real Estate

The biggest asset on the majority of a farm operation’s balance sheet is real estate. When looking at how to transition the real estate to the next generation, there needs to be careful consideration as to on-farm and off-farm heirs. There are a few options to consider when transitioning real estate.

Option 1

The first option is the parcel approach. With this approach, each heir would get their own parcel of land to do with what they want. This option can lead to heartache in a few ways. The first way is no two parcels of land are “equal,” and one heir may feel slighted that they received the lesser quality parcel of land.

This approach also puts the on-farm heir in a tough spot. The off-farm heir(s) could lease or sell their parcel(s), thus potentially putting the on-farm heir in a position that they must purchase that parcel or lose acres in their farming operation.

Option 2

The second option is the equal share approach. In this approach, the land is usually deeded into an LLC while the first generation is alive. If the first generation is still operating the farm, they pay the LLC rent for the real estate, or the next generation would pay the LLC rent if they have taken over the operations.

Once the first generation passes, the second generation would inherit the LLC equally based on the number of heirs. There are several advantages to this approach. The first advantage is for estate tax purposes. Since the real estate is held in an LLC, the potential for discounting the value of that LLC is possible. This approach is also advantageous if one of the goals of the succession plan is to protect the on-farm heir. The LLC can be structured to keep the real estate intact.

Option 3

The third option is the asset swap approach. This approach works if you have enough non-farm assets to give to the off-farm heir(s). Those assets could consist of rental properties, cash, life insurance, retirement accounts, etc. The on-farm heir(s) would receive the farm real estate, and the off-farm heir(s) would receive the other assets from the estate. This approach is usually coupled with one of the other approaches to get the on-farm heir more of the real estate if transitioning all of it is not feasible.

Option 4

The fourth option is the gifting approach. This approach is reserved for two scenarios. The first scenario is if there are potential estate tax issues. At the time of this blog, there is discussion of significantly decreasing the estate exemption. If your estate is in danger of being subject to estate taxes, then gifting should be considered.

The other scenario where gifting makes sense is if the gift is to the on-farm heir and the first generation does not need that cash flow in retirement. Once that real estate is gifted, the rights to the income off that real estate are relinquished.

 

3. Cash Flow & Timeframe

When transitioning the farm’s operations, cash flow and timeframe are the two most important factors. A 100% transition in a one-year period is extremely challenging for both the successor and the predecessor. The successor now has all the risk, capital demands for equipment and real estate rent.

The predecessor will most likely have a large tax consequence due to the carry-over grain or livestock sold with minimal expenses against that income. The gradual transition of the farm is beneficial for both parties. It eases the capital demand for the successor and lessens the tax burden for the predecessor.

When the next generation takes over, they will be leasing/purchasing the equipment and renting the real estate. This becomes a balancing act as the predecessor determines what they need in retirement for cash flow and what the successor can afford to pay. This is the point where your succession planning team becomes beneficial to make sure everyone can accomplish their goals without putting strain on the other party.

There are many other aspects to a successful succession plan, but these are a few areas to consider when starting. If you have questions or want more information, please contact us.

ABOUT THE AUTHOR

402.463.8987

cthompson@lutz.us

LINKEDIN

747 N BURLINGTON AVE

SUITE 401

PO BOX 1317

HASTINGS, NE 68902

CURTIS THOMPSON + TAX DIRECTOR

Curtis Thompson is a Tax Director at Lutz with over seven years of experience in public accounting. His experience includes tax planning, consulting and compliance for individuals and closely-held businesses with a focus in the agriculture industry.

AREAS OF FOCUS
AFFILIATIONS AND CREDENTIALS
  • Amerian Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • Certified Public Accountant
EDUCATIONAL BACKGROUND
  • BSBA, Peru State College, Peru, NE
COMMUNITY SERVICE
  • Hastings Give Day, Volunteer
  • Our Lady of Assumption Catholic Church, Member

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Understanding the Different Funding Programs for Farmers

Understanding the Different Funding Programs for Farmers

 

LUTZ BUSINESS INSIGHTS

 

Funding Programs for Farmers

Understanding the different funding programs for farmers

bryson henkel, senior accountant

 

Farming can be costly – especially if you do it on a large scale. From starting the farm to buying tools to marketing, you need finances to make the project a success. This is where an agricultural loan can help. If you are in the farming business, you should be aware of the available funding options for farmers and how you can use them. This blog contains information on the available funding programs for farmers.

 

1. USDA: Farm Service Agency (FSA) Farm Loans

FSA firms help farmers and ranchers to get loans from USDA-approved lenders at reasonable terms. The FSA loans are available to the farmers or ranchers who cannot secure commercial credit from banks, farm credit institutions or other lenders. Farmers can use this loan to acquire new land, add more livestock, buy seeds, supplies and other needed materials. Here are the main types of USDA FSA loans:

Farm Ownership Loans

Farm ownership loans are used to enlarge an existing farm/ranch or buy a new one. You can use this loan to settle closing costs for the land purchase or invest in soil and water conservation on the farm.

Operation Loans

Operation loans are used to settle the daily operating costs in the farm. You can use them to buy new equipment, pay for minor repairs in the estate, add more livestock or order more seed supplies. 

Microloans

Microloans can either be an operation loan or farm ownership loan. They are best suited for small or beginning farmers who need smaller loans.

Emergency Loans

As the name implies, emergency loans only apply in emergencies. For instance, you may need this type of loan when you suffer a farming loss resulting from floods, drought or other natural disasters. 

Emergency loans tend to have a short application process and fewer requirements, provided you have proof of loss. You can use emergency loans to do the following:

  • Restore or replace the damaged property
  • Pay for the production expenses associated with the natural disaster
  • Refinance farming debts caused by the loss
  • Settle family living expenses as you recover your farm

Land Contract Guarantees

A land contract guarantee is given to the farm owner who would like to transfer the land or ranch to other people. This loan guarantees the retiring farmer who self-finances the sale of the land to beginning farmers or socially disadvantaged farmers and ranchers.

PROGRAM

INTEREST RATES

Farm operating – direct

1.750%

Farm operating – microloan

1.750%

Farm ownership – direct

2.875%

Farm ownership – microloan

2.875%

Farm ownership – direct, joint financing

2.500%

Farm ownership – down payment

1.500%

Emergency loan – the amount of actual loss

2.750%

Effective as of October 1, 2021

Note: The interest rates for the above USDA-FSA loans vary greatly. Here is a simple representation of the current interest rates, according to FSA.USDA.gov.

 

2. USDA FSA ARC/PLC Programs

This program protects farmers from significant price drops in crop revenue. Here are the two primary payment programs which fall under the USDA FSA ARC/PLC category:

Agriculture Risk Coverage-County (ARC-CO)

The ARC-CO program provides farmers with income support based on the historical base acres of the land and not the current production. Farmers can only get this payment when the country crop revenue of the covered agricultural products is less than the ARC-CO guarantee.

Price Loss Coverage (PLC)

PLC payments are offered to farmers when the effective price of the covered commodity is less than the current reference price of the particular commodity. The effective price should be higher than the national average loan rate and the market year average price. 

 

3. USDA FSA Market Facilitation Program (MFP) program

Are you a farmer who has directly experienced a loss caused by illegal retaliation of tariffs? The MFP program is the best for you.

An MFP provides financial help to farmers or ranchers who experience a direct adverse impact of an illegal retaliatory tariff, causing the loss of traditional exports. The MFP payment is only eligible to farmers or ranchers who produce the following:

  • Non-specialty crops such as corn, canola, wheat, upland cotton, dried beans, long cotton, sesame seeds, rice, millet, oats, and mustard seeds.
  • Specialty crops such as almonds, fresh grapes, macadamia nuts, walnuts, cherries and cultivated ginseng.
  • Hogs and dairy

In addition to producing the above-covered crops, farmers should have a farm number with any USDA agency and should get 75% of their adjusted income from the farm or ranch. The payments are calculated differently according to the particular type of crop covered.

Contact us if you have any questions or learn more about our agricultural accounting services.

ABOUT THE AUTHOR

402.462.4154
bhenkel@lutz.us
LINKEDIN

BRYSON HENKEL + SENIOR ACCOUNTANT

Bryson Henkel is a Senior Accountant at Lutz with over four years of tax and audit experience. He specializes in individual and business taxation for the Agriculture industry. In addition, he provides employee benefit plan audits.

AREAS OF FOCUS
  • Individual & Business Taxation
  • Agriculture Industry
  • Auditing & Consulting
  • Employee Benefit Plan Audits
AFFILIATIONS AND CREDENTIALS
  • Certified Public Accountant
EDUCATIONAL BACKGROUND
  • BSBA in Accounting, University of Nebraska, Kearney, NE

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6.1.22 | Agriculture Tax Update | Webinar

6.1.22 | Agriculture Tax Update | Webinar

 

LUTZ BUSINESS INSIGHTS

 

Agriculture Tax Update

Agriculture Tax Update

6.1.22 | 11:30AM – 12:30PM | Webinar

In this webinar, Lutz experts Bryson Henkel and Jen Schardt cover future possible tax law changes and related planning opportunities. They will also have a refresher crash course on current farm tax provisions including deferred grain contracts, QBI (199A) deductions, and more.

Key Takeaways:

  • Update on Law Changes
  • Tax Planning Opportunities
  • Refresher of Current Provisions

Seminar Level: General Accounting Knowledge and Up

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Biden Tax Proposal Affects Farmers, Ranchers and Business Owners

Biden Tax Proposal Affects Farmers, Ranchers and Business Owners

 

LUTZ BUSINESS INSIGHTS

 

biden tax proposal affects farmers, ranchers and business owners

jim honz, tax shareholder

 

As a presidential candidate, Joe Biden campaigned on raising individual and corporate income taxes to fund a variety of social programs.  As president, he unquestionably delivered on his tax-increase promise, releasing his Fiscal Year 2022 (FY2022) budget proposal on May 28, 2021.  President Biden proposed FY2022 budget contains several provisions detrimental to family farms and businesses, including ones that sharply raise taxes and eliminate the step-up in basis on inherited assets.  This blog will explore some of these provisions and suggest steps to avoid or minimize the tax bite.

 

Tax Rate Increases – C Corps and Individuals

C Corporation Tax Rate Increase

Before delving into President Biden’s budget proposal, it’s worth revisiting the advantages and disadvantages of operating a farm in a C Corp structure.  On the plus side, a C Corp provides a layer of personal liability protection.  In addition, C Corps can provide tax-free meals to employees and spouses/dependents if meals are served on farm premises and provided for the convenience of the employer. (Livestock operations are easier to justify than grain operations, but courts have held that grain farm employees are also eligible for the exclusion.) S Corp employees and partners in farm partnerships are not eligible for meal exclusions, so this is a significant tax-free fringe benefit for C Corp employees.  Also, C Corporations historically have had a low marginal tax rate on the first dollars of taxable income.  2017’s Tax Cuts and Jobs Act (TCJA) raised the corporate tax rate to a flat 21% on all taxable income, eliminating the 15% bracket on the first $50,000 of taxable income. 

A major C Corp disadvantage has always been double taxation, that is paying individual income taxes on dividend income that’s already been subject to corporate income taxes.  Individual tax rates on dividend income vary, but at times the effective double-tax rate on corporate dividends has been nearly 70%.  Currently, the highest effective rate on doubled-taxed income is around 50%.

Another farming C Corp downside is a possible limit on using the cash method accounting.  This affects only corporations with 3-year average annual gross receipts exceeding $25,000,000, so most farming operations are unaffected by this limitation. 

Having revisited C Corp tax advantages and disadvantages, we’ll turn to the proposed C Corp tax rate increase. President Biden’s budget will raise the statutory corporate tax rate over 33% (from 21 percent to 28 percent) in hopes of raising nearly $1 trillion over the next ten years. Remember, C Corp tax rates apply not only to operating income but also gains on sales of capital assets such as farms.  This means the effective double tax rate on farm income or farm sales could be more than 67% when C Corp and Individual tax increases are combined. 

 

C Corporation Tax Increase Workarounds

Many family farm corporations can elect to be taxed as an S Corporation, which can reduce or eliminate double taxation with effective tax planning.  This could also be an escape valve for sales of highly appreciated farmland, ranches and businesses.  To avoid double taxation, a Corp that elects to be taxed as an S Corporation must wait five years before selling an asset with a built-in gain.  After the 5-year waiting period, appreciated assets can be sold with a single level of tax at individual rates. 

 

Individual Income Tax Rates

Unlike C Corporations, individuals pay different tax rates on different types of income.  Ordinary income is subject to one set of tax brackets, while long-term capital gains are often subject to lower rates.  We’ll discuss President Biden’s budget proposal’s effect on each. 

Ordinary income tax rates are the ones most frequently mentioned when someone talks about his or her “tax bracket.”  Tax brackets start at a 10% on the first dollar of taxable income (calculated after deducting standard or itemized deductions) and increase six times until reaching a top rate of 37% at taxable income of $523,601 for singles and $628,301 for married couples filing joint returns.  Biden’s budget proposal would raise the top tax rate to 39.6% for singles making $452,700 and joint filers making $509,300. 

Long-Term Capital Gain tax rates apply to sale or exchange transactions involving capital assets, such as farmland, held for more than a year.  Currently capped at 23.8%, President Biden’s budget proposal wants to raise the long-term capital gain tax rate to 43.4% on taxpayers with adjusted gross incomes of more than $1,000,000.  Considering state income taxes (such as Nebraska’s 6.84% tax rate), sellers could find themselves losing over half of their capital gains to taxes!  This combined tax rate would be higher than the highest rate on wage income and highest among countries in the Organization for Economic Co-operation and Development (OECD). 

 

Individual Tax Increase Workarounds

Two strategies spring to mind to deal with the long-term capital gain tax rate increase.  First, consider using the installment sale method to defer income from property sale transactions into future years.  This could result in keeping adjusted gross income below the $1,000,000 level at which President Biden’s proposed long-term capital gain tax rate would apply.  The Installment sale method allows taxpayers to decide when payments will be received and, therefore, taxed. 

Second, business taxpayers have significant control over taxable income through bonus depreciation’s 100% expense deduction.  Depreciable asset purchases, when timed right, could help keep income below $1,000,000.  Judicious use of these tactics could allow taxpayers to escape the proposed confiscatory 50+% tax rate. 

 

Income Subject to Tax

This next section deals with President Biden’s proposal provisions that would tax more income.  As a reminder, federal income tax is computed on taxable income, that is, gross income less deductions and exclusions.  Gross income is broadly defined as all income from whatever source derived.  Examples of tax-exempt income include life insurance proceeds, municipal bond interest and child support.  Here are two types of income that have consistently been excluded from taxation that would be taxable under President Biden’s proposal.   

 

Like-kind/Section 1031 Exchange

Recognized gains on a real estate exchange – called a like-kind or Section 1031 exchange, where a seller fully reinvests his or her equity in relinquished property into like kind property – have long been excluded from taxation.  In such a transaction, the seller doesn’t take any sale proceeds in cash, and US tax laws have allowed these gains to be excluded from current taxation.  Under this provision, a taxpayer’s gain that would have been recognized is effectively deferred until the replacement property is sold.  President Biden’s budget proposal limits like kind exchange deferrals to $500,000 or $1million if filing a married-filing-joint return.  Gains more than these amounts will be taxed.

 

Inherited Property – Step-up in Basis at Death

One other type of income has consistently been excluded from taxes: gains from sales of inherited appreciated property.  Property inherited from a decedent has its cost basis adjusted to fair market value at the date of the decedent’s death, making pre-death gains nontaxable.  This is known as a step-up in basis (though it can work the other way when a property’s value is less than cost at a decedent’s death, in which case a step-down in basis occurs).  Under this rule, inheritors of property owe taxes only on post-death appreciation.

There are many good tax policy reasons for basis step-up, including fairness and simplicity.  Without a step-up in basis, heirs would need to know the cost basis of inherited assets or be forced to pay tax on the entire value of property received. (IRS rules require taxpayers to prove the basis of assets sold.  If you can’t prove an asset’s cost basis, the IRS assumes 100% of sale proceeds are taxable.) This would be a nightmare for heirs who often have no idea of the amount paid for a certain asset. 

Not only would President Biden’s plan repeal the step-up in basis for amounts more than $1 million ($2 million for joint filers), it would also trigger gains on appreciated assets at death, much of which is due simply to inflation, not any real increase in value.  The proposal would exclude from recognition any gains on tangible personal property such as household furnishings and personal effects (which seldom appreciate anyway).  However, it could mean heirs would need to sell investment property to pay this tax if the decedent had insufficient cash to pay it.  It would further require the creation of a new tax form and regulations to implement.  In a stroke of fairness, the existing $250,000/$500,000 exclusion would continue to apply for gains on primary residences. 

 

Family-owned Farms and Businesses

Payment of tax on the appreciation of certain family-owned and operated businesses would not be due until the business interest is sold or ceases to be family-owned and operated.  While this might provide some relief, it would be difficult for successive generations to operate a family business when tax debts are piling up against it after each sale. 

Tax law changes are coming.  There is still uncertainty on exact proposals and effective dates, but taxpayers who want to minimize taxes might be wise to structure transactions to close in 2021. If you have any questions, please contact us. You can also read related articles on our accounting blog.

 

ABOUT THE AUTHOR

Jim Honz

402.492.2121

jhonz@lutz.us

JIM HONZ + TAX SHAREHOLDER

Jim Honz joined the firm in 1984 and currently serves as a Tax Shareholder. His areas of expertise include export tax incentives (IC-DISCs), choice of business entity, and methods of accounting (including Lifo Inventory). In addition, Jim works with tax-exempt organizations on tax and organizational issues.

AREAS OF FOCUS
AFFILIATIONS AND CREDENTIALS
  • American Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • Certified Public Accountant
  • Silver Medal on CPA Exam for second highest score
EDUCATIONAL BACKGROUND
  • BSBA in Accounting, Creighton University, Omaha, NE
COMMUNITY SERVICE
  • Catholic Charities, Past Board Member/President
  • Nebraska Organ Recovery System, Inc., Board Member/Treasurer
  • Creighton University Financial Advisory Committee, Past Alumni Member Appointed by CU President
  • St. Wenceslaus Church, Elected Parish Council Member (Vice President), Chairman of Finance Committee
  • Creighton University Accounting Department, Past Advisory Board Member
  • SIDs 398 (Pacific Springs) & 189 (Georgetown), Elected Trustee/Chairman
  • NSCPA, Political Education Committee Member

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R&D Credits in the Agriculture Industry

R&D Credits in the Agriculture Industry

 

LUTZ BUSINESS INSIGHTS

 

R&D CREDITS IN THE AGRICULTURE INDUSTRY

r&d credits in the agriculture industry

adam jacobitz, tax & audit shareholder

 

America’s agricultural sector has been facing challenges in workforce availability, climate, technology, among many other issues. With the world population expected to hit 9 billion by the year 2050, agriculture businesses will need to ramp up production by up to 70% to accommodate the growing population.

Farms across the U.S are incorporating new and innovative techniques to deal with issues of pesticides, fertilizers, contamination, spoiled produce, harvesting, and diminishing labor force. Thankfully, federal tax credits are available for corporations, individuals, and businesses undertaking research and development efforts to alleviate the current farming and produce challenges while enhancing better yields.

The Research & Development Tax Credit

Research & Development Tax Credits are a government incentive aimed at helping businesses by encouraging and rewarding innovation. The federal Research and Development (R&D) Tax Credit act was enacted in 1981 and allows a credit of up to 13% of eligible spending for new or improved processes and products. R&D tax credits are available to companies engaged in research and development activity, regardless of their size, albeit subject to eligibility.

R&D Eligibility Requirements

Your research/project can qualify for tax credits if it meets the following criteria:

  • Improved or new products, processes, or software– Your research qualifies if it relates to a new or enhanced performance, function, or quality of an agricultural component (i.e., process, product, formula, software, or technique).
  • Technological in nature- This is to say that the activity(s) to be undertaken must be primarily technical. As such, the activity must be based on principles of science such as biology, computer science, or engineering.
  • Eliminates uncertainties- The activity must also tackle uncertainties in the methodology, capabilities, or development process of the business component.
  • Process of experimentation- For the research to qualify for the R&D tax credit, the activity must also entail evaluation and experimentation of one or more options through development, refinement, and testing of different alternatives.

Qualified costs include costs of supplies, testing, or patents, research expenses, and employee wages.

Are You Missing Out?

The agricultural sector is rife with activities that are eligible for the R&D tax credit. Check out a few brief examples of the R&D tax credit for agriculture to help you determine your eligibility.

Common Examples of R&D Tax Credits for Agriculture

1. Development of New or Enhanced Storage Techniques

This may entail developing packaging to control temperature and moisture or even a structural design to prevent the produce/product from degradation, contamination, molding, fermentation, or grain clumping.

2. Development of New or Improved Conveyance Chains/Systems

As a product is moved through production, there can be changes to the conveyance design or process to reduce waste/material loss, improve speed, or enhance the process’s dependability. Transport designs such as refrigeration or trucking may also qualify.

3. Development of New or Improved Products or Processes to Maximize Yield

As you seek to improve the growth or returns on livestock or crops, there is a wide range of activities that may qualify here. These include:

  • Testing of new or improved techniques of planting and harvesting
  • Testing of new or improved fertilizers or chemical additives
  • Testing of new or enhanced feeding techniques and feeds to enhance livestock growth and health
  • Examining new soil blends including nutrient density, mineral content, and pH 
  • Evaluation of new products and methods for preventing disease or pest infestation

4. Development of new or improved software

This may entail developing software meant to facilitate land tracking, produce or material monitoring, and crop selection based on soil characteristics.

5. Development of New or Improved Irrigation Technologies

If you are creating a mechanical, electrical system, or software to automate or streamline an irrigation process, your project is may be eligible for R&D tax credits.

6. Development of New or Improved Techniques or Equipment to Minimize Environmental Impact

This involves equipment or techniques to enhance compliance with evolving environmental legislation or, generally, any other interventions in agriculture meant to promote environmental conservation.

Common Exclusionary Items

It is worth noting that the following items are usually not eligible for R&D tax credits:

  1. Equipment investment subject to depreciation
  2. Small adjustments to livestock diet or feed components
  3. Adapting an existing product to a customer’s specifications
  4. Administrative or functional operations that do not contribute or amount to agricultural innovation

How We Can Help

Many agricultural corporations and businesses are still unaware that the government is offering generous R&D incentives or believe that such incentives do not apply to the agricultural sector. Even those aware may fail to grasp the full extent of R&D tax credits that they are entitled to. Have questions? Contact us today to learn more about these unique tax credits and how they might benefit you.

ABOUT THE AUTHOR

402.463.8984

ajacobitz@lutz.us

ADAM JACOBITZ + TAX & AUDIT SHAREHOLDER

Adam Jacobitz is a Tax & Audit Shareholder at Lutz with over 14 years of tax and audit experience. He specializes in individual and business income taxation, housing industry audits, and consulting services.

AREAS OF FOCUS

 

AFFILIATIONS AND CREDENTIALS
  • American Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • Affordable Housing Association of Certified Public Accountants, Member
  • National Association of Housing & Redevelopment Officials - NE Chapter, Member
  • Certified Public Accountant
EDUCATIONAL BACKGROUND
  • BA in Accounting & Finance with a Minor in Economics, Doane College, Crete, NE
COMMUNITY SERVICE
  • Faith Lutheran Church, Treasurer
  • Leadership Hastings, Past Board Member and Treasurer
  • Hastings Symphony Orchestra, Past Board Member and Treasurer
  • Hastings Community Foundation, Board Member

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8.5.2020 | Agriculture Tax Cuts & Jobs Act (199A) Update | Recording

8.5.2020 | Agriculture Tax Cuts & Jobs Act (199A) Update | Recording

 

LUTZ BUSINESS INSIGHTS

 

Agriculture Tax Cuts & Jobs Act (199A) Update

8.5.2020 | agriculture tax cuts & jobs act (199a) update | Recording

The Tax Cuts and Jobs Act of 2017 contains numerous provisions that impact the agriculture industry. No provision has created more uncertainty and questions than IRC Section 199A – commonly known as the qualified business income (QBI) deduction. In this webinar, Curtis Thompson and Jen Schardt cover the ins and outs of Section 199A and some of the more unclear and uncertain areas of the deduction.

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