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Senior Contributor
bkadds
Posts: 251
Registered: ‎04-29-2011
0

What are you doing to shield income this year?

With the 179 going to $25k next year are you guys taking more income this year due to less deductions and higher taxes next year? Getting late to make decisions regarding equipment, etc, but what are your thoughts?
Veteran Advisor
Shaggy98
Posts: 3,741
Registered: ‎06-19-2011
0

Re: What are you doing to shield income this year?

I'm pulling all income into 2012 and updating some equipment that I've been wanting to do for awhile now.  Canceled fertilizer order for wheat top dressing because if we don't receive any rain soon I won't have a crop to top dress.  If we do get rain I'll reorder products at that time and just eat the early pay discount that was lost.

Senior Contributor
bkadds
Posts: 251
Registered: ‎04-29-2011
0

Re: What are you doing to shield income this year?

If we stay dry I would think Cargill could bring all they want in and still see prices hold or rise. Tough decision with stalemate in Washington regarding taxes and 179.
Veteran Advisor
Jim Meade / Iowa City
Posts: 2,382
Registered: ‎04-30-2010
0

Re: What are you doing to shield income this year?

Is anyone defering sales they'd like to make because they want the income next tax year and are leery of a defered contract?

Veteran Advisor
Nebrfarmr
Posts: 6,808
Registered: ‎10-25-2010
0

Not a problem

Not a problem for me.  I'm facing $200+ hay, hungry cows, amazingly high fuel bills for irrigation, and a short crop.

This year will not be a 'loss' for me, by any means, I had planned for the worst, but to give some insight on how tough things have been in West Central Nebraska, my purchases and improvements this year, include $1800 in cattle pen repairs, and $9000 in total capital expenditures, and I have no need to 'shield' income.   High feed and fuel prices are doing that quite well for me.   About the only thing I can say, is that right now, we are planning to sell a bunch of cows after the first of the year, but that is not 'income' from selling calves, as is normal, but rather 'sell some breeding cows, before they all starve' selling.   I think in the past, when you were forced to sell because of drought, you could defer that income against the expense of buying replacements, when it started raining again.

Advisor
jrsiajdranch
Posts: 2,117
Registered: ‎05-03-2010
0

Re: Not a problem

I milk cows and do not understand the question!:smileyembarrassed:

Veteran Advisor
roarintiger1
Posts: 1,509
Registered: ‎04-29-2011
0

Re: Not a problem

I am holding grain until it comes down in value......that should do it....... :smileywink:

"Failing to prepare is preparing to fail." "Success happens when preparation meets opportunity"
Senior Contributor
farmer46
Posts: 206
Registered: ‎09-27-2011
0

Re: Not a problem

I am holding grain until it comes down in value......that should do it....... :smileywink:

"I'm no expert by any stretch of my imagination."
 
 
That is funny, me too.