The Tax Cuts and Jobs Act is the most comprehensive tax law change for businesses since 1986, with numerous issues arising for all industries. In this two hour webinar, we'll look at the subset of issues that are likely to impact farming and ranching businesses. In addition to agriculture specific issues related to changes in depreciation and an election out of the interest limitation rules, we'll also look at the new Section 199A qualified business income benefit for passthroughs, reduced corporate tax rates for C corporation agricultural entities, changes made to net operating loss rules (include the special rules for farmers), meals and entertainment items and more.
On June 8, Acting Commissioner David Kautter in a speech in Virginia promised the first batch of regulations under Section 199A would be released by the end of June. We will look at the relevant guidance in the proposed regulations issued to date in this webinar to help you stay up to date on the most recent IRS thinking on these provisions in the law.
The webinar will be focused on farm and ranch organizations as impacted by TCJA, so it will look at issues like entity selection for farming operations (how the law affects entity selection in a farming operation, as well as whether current operations should change entity type), the impact of agriculture specific depreciation changes, the interest deduction limitation for >$25 revenue farms and the issues with the election out.
The entity selection topic is especially interesting when combined with the $25 million accounting method rules (including getting out of 263A and ability to go to full cash basis even if the C corporation would otherwise be pushed to accrual under Section 447) as it impacts agriculture.
While most of TCJA is not agriculture specific in nature, agricultural businesses are interested in a specific subset of the broader issues. The selection of topics will be aimed at those that impact farms and ranches and not, say, at a long discussion of specified service business issues under Section 199A (a major topic in most general TCJA sessions).
- Section 199A passthrough deduction and reduced corporate tax rates - do the changes impact entity selection and how?
- Bonus depreciation issues and changes in depreciation for certain agricultural assets
- Final fix for the "grain glitch" - cooperatives rolling back to the prior Section 199 rules
- Limitations on interest deductions: exemption for small businesses and special election for farms with more than $25 million in revenue
- Meals that are and are not deductible under TCJA
- GAAP revenue conformity rules - when do they apply?
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Edward K. Zollars, CPA is in public practice in Phoenix, Arizona as a partner with the firm of Thomas & Zollars & Lynch, Ltd. He has been in practice for over twenty five years, specializing in tax issues for closely held businesses and individuals.
Ed has been professionally involved with both tax and technology issues, combing the two disciplines in starting the first tax podcast (Ed Zollars Tax Update, produced weekly dealing with current tax issues. He has been a member of AICPA Tax Division Committees dealing with tax and technology issues, and was the Tax Section’s representative on three occasions to the AICPA’s Top Ten Technologies project. Ed is also a member of the Phoenix Tax Workshop’s Advisory Committee, and currently serves on the Tax Legislation Liaison Committee for the Arizona Society of CPAs.Ed was selected as a Life Member by the Arizona Society of CPAs in May of 2010.
Ed is a co-author of the Arizona Income Tax Guide published by the Phoenix Tax Workshop, and has written articles published in Practical Tax Strategies and the Tax Adviser. He has been a frequent contributor to a number of professional tax discussion groups, and served as systems operator on the AICPA’s Accountants Forum in the mid 1990s.
He has spoken regularly on tax and technology topics since 1996, speaking before conferences sponsored by the AICPA and a number of state society of CPAs.