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gaming Obamacare subsidy

Since croppers enjoy an almost unequaled opportunity to manipulate taxable income from year to year, how can the Obamacare subsidy figure in there?


Upon cursory consideration it is tricky and I'm not an authority on either current tax strategies or the subsidy.


Anybody done any work on this?

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3 Replies

Re: gaming Obamacare subsidy

Talked to a neighbor just last night who said he was working with his tax man on a plan to do that after the coming crop year.

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BA Deere
Honored Advisor

Re: gaming Obamacare subsidy

When you say "manipulating taxes" you are insinuating that farmers are some how avoiding taxes and that simply isn`t true.  A farm on a cash accounting system like look at this year, many are holding off fertilzer purchases as long as they can in hopes of it going down...well in the past if they always pre-paid fertilizer in the fall, now they didn`t have a fertilizer deduction for 2015. 


See, they either bite the bullet in the fall to keep the deduction or get socked with taxes and THEN buy the fertiler in the spring with after-tax dollars.  And a similar thing happens, if prices force them to market grain, either 2 years in one or very little in the other.  So, anyone that can "manipulate taxes" successfully, my hat is off to them.


And that section 179 does us no favors, a guy could easily go broke and owe a ton of so-called avoided past taxes to boot.  When corn was $8 a guy bought iron and used section 179 to avoid/manipulate he gets to make the payments with AFTER TAX DOLLARS and $3 corn, it isn`t fun believe me, I know.   Truth be told, I wish i never heard of section 179.


It boils down to the only way to avoid taxes is to die.  🙂    The heck of it is, if a socialist gets elected president, we may have substantially higher taxes to pay BEFORE we make the payments on the machinery we bought in 2012. 

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Re: gaming Obamacare subsidy

I'm not saying anything of the sort- just the honest observation that croppers have an almost unequaled capacity to manage income reported from year to year.


Sometimes that doesn't work out but it is legit under the law and just fine.


Just saying that the Obamacare subsidy is just another consideration.


BTW, many croppers in my area will have negative income this year if they havne't pushed some forward. The way I read the law if you are under 133% of the Federal Poverty Level you don't get an Obamacare subsidy, you have to go on Medicaid.

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