You might have heard of a corporation or organization being referred to as a “501(c)(5)”. This reference refers to a specific Section in the Internal Revenue Code (“IRC”) and means it is a not for profit labor, agricultural, or horticultural organization recognized by the Internal Revenue Service (“IRS”). It will be exempt form federal income taxes. To qualify for 501(c)(5) …
Hobby Farm Rules
Those who are just beginning a farm operation or food business, those who work off-farm or those who are slowly withdrawing from farming would do well to familiarize themselves with the Internal Revenue Code § 183, “Activities Not Engaged in for Profit,” occasionally referred to as “The Horse Shelter” or “Hobby Loss Rules.” IRC § 183 is designed to prevent …
Ask Cari: Is Rental Income from a Farm Lease Self-Employment Taxable for Social Security Purposes?
I was recently posed this question from a farmer close to retirement concerned about social security. He has been farming his whole life and would like to shift into a landlord role. In way of background, you must have a certain number of credits under the social security system before receiving social security based eligible quarters. A farmer may have …
Saturday Links
It’s been a busy week. I have been catching up on my blog feed before heading to the gym. This is what I found: This month’s Pennsylvania State Agriculture Law Brief has updates on the G-20 Action Plan, Hydraulic Fracturing, and the White House Rural Council. I excitedly received a Google+ invite this week from a respected family law …
Charitable Deductions
I’m blogging from downtown Denver, Colorado. I’m here for the National Cattlemen’s Beef Association (“NCBA”) Annual Convention and Trade Show. I came across an article last night by the Ohio agriculture law firm of Barrett, Easterday, Cunningham & Eselgroth, LLP regarding charitable deductions. Since tax-time is around the corner, I thought it would be appropriate to post a few reminders from …
Labor Day Links
I hope everyone is enjoying their Labor Day! I spent my Labor Day having some good ol’ Texas BBQ and enjoying the street fair in Manhattan. Here are some links for your Labor Day reading: 1. I spent Sunday afternoon listening to the U.S. Department of Agriculture/Department of Justice public workshops. It is definitely worth a listen for livestock producers (particularly cattle folks). …
Tuesday Links
As I was trolling the blogosphere this morning, I came across some interesting posts that I thought I’d share: 1. Because I live in NYC and my country-self tends to be a little naive and trusting, this post reminded me that you can never be too careful (particularly in January with so much traveling taking place for conferences and livestock shows). And this post might …