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Farmers have options on taxes

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By The Associated Press

Tuesday, Dec 02, 2008 - 07:37:59 am CST

The Nebraska Farm Business Association director says farmers should be making preparations and decision on their taxes for 2008.

Director Tina Barrett is reminding farmers that they can write off the first $250,000 in depreciation of assets that were bought in 2008.

That includes tractors, combines and most farm equipment and breeding livestock.

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Journal Star file photo

She says farmers should consider income averaging and make sure they’re not forgetting any credits, exemptions or deductions.

Barrett also says people getting Social Security don’t have to pay self-employment taxes on their conservation ground. But those who still actively farm and don’t receive Social Security have to pay that tax.


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Farmer wrote on December 2, 2008 8:21 am:
" Yep, don't forget to write off that new F-250 powerstroke too. "

mitchy_v wrote on December 2, 2008 8:22 am:
" Here we go again. People will start in with the "farmer get too many brakes, make them pay more" The more farmers have to pay, the more you will have to pay in the store. "

Mat wrote on December 2, 2008 9:37 am:
" I have to agree with Mitchy on this one. All summer long people complained about higher food costs and that farmers were making to much money. Now they are going to complain again that farmers make too much money. Fine...take away the tax incentives to farmers. Let's see the people of Lincoln really start complaining then. Without tax breaks to farmers we would be paying as much for our food as other countries. Just be thankful that because of tax programs like those in place we aren't spending half of our income on food.

Remember, don't cuss out a farmer with a full mouth. "

whoa wrote on December 2, 2008 10:29 am:
" The only people I see in my area driving new F-250's are hunters with license plates from Lincoln and Omaha. Hmm, I wonder if they are able to make their payments on them? "

No Farms No Food wrote on December 2, 2008 10:32 am:
" Enough said.

Until you walk days and hours or years in a farmer's boots, you have no right to point fingers.

Instead, be thankfull we have the safest food supply the world has ever known. "

obviously wrote on December 2, 2008 10:45 am:
" Nebraska farmers have little sense of humility. Try walking in the shoes of other people in our society instead of feeling so lofty...we all work to make this country run, you are no more or no less important than anyone else. "

Nina wrote on December 2, 2008 1:22 pm:
" Farmers are again in trouble today. If your operating costs had risen to double or triple the price of a year ago, and your market price became less than half of what it was a year ago, you would be, too. But the government has been willing to help in the past - such as when we were still farming about five years ago. We could pay in several thousand in income tax, OR the govt would allow us to depreciate all the cost of a farm vehicle THAT WEIGHED OVER 6000 LB ONLY. We bought a used, 5-year-old truck that we still have today (now it's 10 years old.) We don't use it every day, but it's still reliable, and preferable to giving the money to Uncle Sam to waste, as we can see he's been doing majorly. Four-wheel drive is great in bad weather, and since it's our newer, nicest-looking vehicle (our other truck is 13 yrs old), our 6000 lb+ Ford is also our GWF vehicle (graduation, wedding, funeral, that is.) "

RJ wrote on December 2, 2008 3:59 pm:
" AMEN!!! Obiously AMEN!!!! "

Alan wrote on December 2, 2008 4:29 pm:
" The fact that a taxpayer is receiving Social Security is not determinative as to their liability for SE taxes. If they are truly retired and not engaged in the farming business in anyway they MAY not be liable for SE taxes on CRP income. If they are still farming the IRS will have its hand out for SE taxes on the CRP portion of their income.

Read IRS Notice 2006-108 and PLR 8822064 for more information. Material participation in the farming operation is the determinative factor not the receipt of Social Security income. "

Accountant wrote on December 2, 2008 10:07 pm:
" What is the Nebraska Farm Business Association anyway? Sounds like a scame to me. "