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A tax question

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Nicky

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Just wondering how many of your ranches are corporations for tax purposes. We are trying to decide whether we should incorporate or not. Give me the pros and cons of both ways (please :) ) Costs, savings etc
 

Sir Loin

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Nicky

I always recommend you incorporate if for no other reason then to protect your personal assets from a liability claim.
In addition to that, if you are a small operation you most likely will have a paper loss to write off against your day job.

One of the problems you may have is finding an accountant who knows about ranching/farming tax law to work in your best interest.
He deeds to be able to answer question, with out hesitation, about “ Can I depreciate my fences, tractor, and cows as an LLC?”


Here are two sights that may help you.

http://www-student.unl.edu/cis/aecn357b02/online_course/Units/ch16/ch16.pdf

http://www.beginningfarmers.org/farm-business-planning/farm-incorporation/


Hope this helps
SL
 

George

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Sir Loin ,

I think I need to rethink my position on you. I was about to write you off as a trouble maker and an instigator.

With your responce I will wait and see.

Thanks for trying to help others on the site!
 

littlejoe

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George said:
Sir Loin ,

I think I need to rethink my position on you. I was about to write you off as a trouble maker and an instigator.

With your responce I will wait and see.

Thanks for trying to help others on the site!

Easy, George---you gyrines gotta take friends where you can find them!

And--truth be told---they all got a soft spot in my heart---goes back to places with names like Phu Bai, Hue, A Shau...Have a good one~
 

Faster horses

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Nicky said:
Just wondering how many of your ranches are corporations for tax purposes. We are trying to decide whether we should incorporate or not. Give me the pros and cons of both ways (please :) ) Costs, savings etc

I wish I knew more, Nicky, but someone came through our area many
years ago and talked producers into forming corporations. The one downfall I
heard was that it ( the taxes saved )would catch up to you upon sale of your property.
That being said, I will send you a PM with a phone number of a very
wise individual who is in a corporation and could help you understand
about them. So check your PM's...and good luck!
 

R A

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I'm just a small producer and put my ranch here into a LLC. I did it for the protection if something happens. I'm pretty sure I can be liable for one of my cows getting out and hit and hurting those in the vehicle...no open range law, and among other ways something could happen. ....and I put it in for being able to get better health insurance. ....but I just did it and am still learning about it....especially the tax side of it. Sorry I can't be much help.....I don't know for sure if it is going to be a good thing or not???
 

gcreekrch

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We researched forming a LTD. company when we added the MM 3 years ago. Our accountant, banker and lawyer all advised against it as the benefits didn't outweigh the drawbacks for our operation. Every business does have its differences though.
 

WVGenetics

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Look into a Limited Family Partnership. Very good legal and tax protection. The majority of senators and congressmen have one so it has to protect your wallet pretty well and no estate taxes.
 

sweetbasil

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I found this site...

http://agexecutive.com/tax.html


Hope all is well,
SB
 

mrj

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Shouldn't it be considered from all angles, including transition to the next generation, if that is wanted, simplifying management and bookkeeping, liability protection, AND taxes?

Lord knows, most of us in agriculture are hit hard by ALL forms of taxes from property to sales to income, and many will be shocked at the estate tax liability if you own ANY land that has increased in value since purchase.

We transitioned years ago from ranching with our parents and siblings to where we separated prior to the parents deaths. Now, we and our children have five separate families, from early twenties to mid-seventies in age, with cattle owned by the individuals, working together, with younger ones on wages, too, and our land is in an LLC and other mechanisms for estate and ranch transition planning for the future without we senior members. May not be right for everyone, but it seems to be working well for us..........so far!

mrj
 

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