IRS releases publication with “Ten Tax Tips for Farmers”

Being that many of my clients are from Austin, Texas, I thought I would share this publication released by the IRS yesterday.

Here is a brief overview of some of the more important tips:

Net income losses: If your farm generates a negative profit (expenses greater than income), you may be able to carry this loss back to offset taxes paid in a prior period, thus generating a refund. You also have the option to carry it forward and offset future year income and taxes.

Weather related sales: This one is important as we’ve seen some dry periods in Texas, especially during 2011 when we had the Bastrop fires. If you are forced to sell more of your livestock because of drought or flooding, then you may be entitled to delaying the gain from these sales.

Loan Repayment: While you’re entitled to a tax deduction for all ordinary and necessary business expenses, only interest paid on a loan nets you a deduction. It is important to note, that the loan must have been used for business, and not personal purposes.

Fuel Credits/Refunds: Use an ample amount of fuel on the farm last year? This provision written in the code allows for a credit or refund of excise taxes paid on fuel for farming purposes.

For more information, please contact Paul at paul@launchconsultinginc.com or visit the IRS website for more details.

 

Tax Deadline Reminder: 2014 Forms 1099

Almost halfway through January, the Form 1099-MISC deadline is quickly approaching. Copies of this form are due to the recipient at the end of January (February 2, 2015 for 2014 Forms, since January 31, 2015 is a Saturday) and due to the IRS at the end of February (March 2, 2015, since February 28, 2015 is a Saturday). Penalties for failing to file range from $30-$100 PER recipient.

Think you might be required to file? Visit my blog on who is require to file and find out!

Launch Consulting 2014 Form 1099-Misc, Tax Consulting, CPA, Tax Prepare, Austin, Texas

IRS “Red Copy” of 2014 Form 1099-MISC

 

For help filing these informational returns, contact Paul@LaunchConsultingInc.com

For full instructions, visit the IRS website using the link provided below:

http://www.irs.gov/pub/irs-prior/i1099msc–2014.pdf

Am I required to file Form 1099-MISC for 2014?

This is a question I get asked often from new clients. In short, 1099s are issued by businesses (sole-proprietors, LLCs, partnerships, corporations, etc.) who’ve made payments in excess of $600 to individuals or other businesses during the ordinary course of business. This includes services (contract labor), rents, royalties, and interest.

There are certain exceptions that apply to this $600 threshold, but we’ll attempt to keep this post as brief as possible. Under Code Section 6041, payments made to a “corporation” do not require returns of information, however 1099’s are still issued to law firms regardless of their entity structure.

Failure to file these required informational returns will result in penalties ranging from $30-100, depending on how late they are filed.

 

For help preparing Forms 1099-MISC, contact Paul@LaunchConsultingInc.com

Form more information on requirements for filing, visit the IRS website using the link provided below:

http://www.irs.gov/pub/irs-prior/i1099msc–2014.pdf