Virginia Extension Office Offers Tax Tips For Livestock Producers
Monterey, VA – Virginia extension agent Rodney Leech offers some tax tips for producers as we near the end of 2011.
“Before the end of the year, you probably need to follow up on your end of year tax management strategies recommended by your tax advisor,” says Leech. “You can find additional information in the IRS publication 225 Farmers Tax Guide, and those are available at public libraries or online; and we should be getting some copies of that in the extension office.”
He suggests beginning the process of closing out farm books by collecting information on farm net worth. This is a good way to not only walk off some of those extra calories consumed over the holiday, but also to try out that new camera or other devices while gathering the info you need.
“Record the number and approximate value of all the farm assets; your tractors, cattle, machinery, buildings, inventories of grain and feedstuff,” he says. “That can be organized on the asset side of the balance sheet. Be sure to save your notes and recording, or better yet, place the notes or recording in a safe place such as your safety deposit box for possible insurance claims. Review your end of year bank statements or contact your lender for current listings of all personal business liabilities.”
Leech says this should give sufficient information to create a market value net worth statement.
“If you’re using cash accounting methods for tax purposes, you need to make sure your actual records match the deposit and check dates for all claimed income and expenses,” says Leech. “Also plan to get all tax records summarized and to your tax advisor by February 1st, 2012.”
He lists just some of the credits that producers might be eligible for this year.
“Agriculture best management practices credits, conservation tillage equipment credit, the fertilizer and pesticide application equipment credit, land preservation credit provisions; your long term care insurance credit,” he says, “and that list is available on the internet and I have that site available at our office.”
Leech says you can use these records to plan for 2012 budgets and cropping, feeding and breeding decisions for the next year. Finally, he offers some additional advice for anyone with timber sales this year.
“If you do have timber sales this year the timber taxes are not the same as farm taxes,” he says, “and if you’ve sold timber you should visit national timber tax website at www.timbertax.org; there’s some good ideas or tips for you to prepare your tax statements for that. If you have any questions on any of these, please give me a call at the Highland County office. Thank you very much and wish you a very successful 2012 farm year.”
Highland Extension Office in Monterey:
540-468-2225 Rodney Leech firstname.lastname@example.org
Bath Extension Office in Warm Springs:
540-839-7261 Rodney Leech email@example.com
WVU Extension Office in Marlinton:
304-799-4852 Greg Hamons Greg.Hamons@mail.wvu.edu