Gifting Ag Commodities to Family Members
May 7, 2018
RFD-TV’s “Market Day Report” hosts a weekly segment, called Rural Money, with Roger McEowen, Professor of Agricultural Law and Taxation at the Washburn University School of Law, and an affiliate with the Kansas Farm Bureau.
The topic of this week’s interview: Some farm families gift ag commodities to their children as part of their tax planning strategy. The technique can save income as well as self-employment tax, but as always, there are rules that have to be followed and possible benefits and disadvantage that vary from one situation to another. How should commodity gift transactions be structured? What happens if the gifted commodities were not raised or produced in a prior tax year? What are the tax consequences to the donee? What is the impact of the tax cuts and jobs act on commodity gifts to children?
Professor McEowen gives provides answers in the video above, and further information on this and many other topics are available on his blog.