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TAX PLANNING & PREPARATION Are you paying more taxes than you should?
from FARM CREDIT EAST
by NDSACatalogs
Farm Credit East customers Ron and Nancy Robbins of North Harbor Dairy in Sackets Harbor, N.Y.
DON’T PAY MORE TAXES THAN YOU SHOULD.
Learn more about Farm Credit East TAX SERVICES at FarmCreditEast.com.
TAX PLANNING
Long-term planning with a tax specialist knowledgeable in your specific ag business can mean significant savings when it comes time to file your returns. Farm Credit East’s tax team is up to date with the tax laws affecting businesses like yours. Our specialists can address virtually all your business concerns and are available to you throughout the year to analyze and discuss year-to-date activities, tax saving strategies and the tax consequences of every business decision. They will work with you to ensure you are not paying more than you should and to help forecast your end-of-year tax liabilities.
GET ALL THE DEDUCTIONS YOU’RE ALLOWED
There are several ways to realize all the deductions you are entitled to, including:
• Business organization. For example, operating as a partnership may offer more tax savings than operating as a sole proprietor. • Family tax planning. Hiring family members to work in the business could reduce family tax liability. • Fringe benefits. Setting up retirement plans, medical plans and other fringe benefits could mean attractive tax deductions for many businesses.
SCHEDULE A TAX REVIEW
A Farm Credit East tax specialist will discuss with you all the circumstances surrounding your business — and your life — which could have an effect on your business’ tax situation. Topics, such as income, expenses, major purchases, investments, depreciation … even marriage or retirement. Our advisors specialize in ag tax laws and will work with you to plan for the most beneficial tax arrangement for your business.
EVENTS AND ACTIVITIES AFFECTING YOUR TAX SITUATION
• Marriage, retirement, purchasing a home, etc. • Starting a new business • Income and expense analysis and projections • Major purchases, sales and investments, leases • Depreciations • Selling of assets • Organizing farm records • Capital expenditures
TYPES OF TAX RETURNS PREPARED BY FARM CREDIT EAST
• Individual returns • Sole proprietor with schedule F or C • Partnership • S-corporation and
C-corporation • Fiduciary (for estates and trusts) • Part-time farmers and fishermen • Payroll tax reporting • Sales tax reporting • Gift taxes • Amended returns • Sales and gasoline tax refunds • Retirement plan reporting
TAX PREPARATION
A Farm Credit East tax specialist can take a look at your situation and provide you with specific advice that will help you capture every deduction that the law allows. Agricultural businesses are subject to a variety of tax laws, deductions and requirements that may not be familiar to non-specialized advisors and tax preparers.
FREQUENTLY OVERLOOKED TAX PROVISIONS
Tax preparers unfamiliar with ag tax laws often overlook deductions and other benefits to which ag business owners are legally entitled. Here are six benefits often mishandled by nonfarm tax preparers:
1.Depreciation. Has the optimum amount been taken? 2.Prepaid farm expenses, such as feed and supplies. 3.Special credits, such as targeted job credit, rehabilitation credit, earned income credit and investment credit. 4.Tax benefits that cannot be taken in one year, but can be carried over to another year (investment credit, net operating loss). 5.The sale of assets on Schedule F. Many preparers report these sales, which forces farmers to unnecessarily pay self-employment tax on the income. 6.The tax considerations of various business structures (partnerships, S-corporations,
C-corporations). Using a Farm Credit East tax specialist ensures that you’ll receive your correct deductions and allowances while avoiding penalties for failing to meet any special requirements. Call one of our tax specialists today to learn how we do our job, so you can focus on yours.
FREQUENTLY ASKED QUESTIONS TAX PLANNING
When should I call Farm Credit East?
We suggest you consult with a Farm Credit tax planner well in advance of filing your tax return. It’s also a good idea to talk to us when you’re considering a change in your business.
Are my records confidential?
You can be assured that the financial information you give to your Farm Credit East tax specialist is strictly confidential. If you borrow from us, you decide whether your loan officer may see your tax records.
What is the cost?
We charge by the number of hours needed for tax planning. The cost of our service is dependent on the complexity of your operation. Your tax specialist can give you an estimate after discussing your tax planning needs with you. If you are not happy with our service, we have a satisfaction guarantee.
What are my responsibilities as a customer?
You are responsible to work with Farm Credit East to ensure that your tax deadlines are met. This means holding regular conversations with your tax specialist and regularly updating your records. Also, you will need to make up-to-date records available to your tax specialist to accurately plan for your future. We can help with your record-keeping needs as well.
FREQUENTLY ASKED QUESTIONS TAX PREPARATION
Am I eligible for Farm Credit East tax preparation services?
You do not need to borrow from us for us to prepare your taxes. You are eligible if you are an individual or enterprise involved in agriculture, fishing and aquaculture, as well as timber, nursery, greenhouse, vineyard and similar operations. Managers, employees and part-time farmers may also use Farm Credit East tax preparation services.
What are my responsibilities as a customer?
You are responsible to help us meet the tax deadlines. This means holding regular conversations with your tax accountant and regularly updating your records. Also, you are responsible for having accurate records so that at tax time we have all the correct information needed to properly file your returns.
What happens if I get audited?
Farm Credit East is willing to represent you in an audit. We will prepare the reports and help you navigate through the process.
What happens if a mistake is made?
We will work with you to correct the mistake. If it is our mistake, we will pay any penalties that may occur. If it is due to misinformation, we will work to correct the issue with you for the future and minimize the current penalties.
What is the cost?
We charge by the number of hours needed to file your tax return. The cost of our service is dependent on the complexity of your operation. Your Farm Credit East tax specialist can give you an estimate after discussing your tax return with you. If you are not happy with our service, we have a satisfaction guarantee. You tell us what the service was worth to you and pay that price.
A VIEW FROM THE FIELD
A SMOOTH TRANSITION
Ron and Nancy Robbins own an 800-cow dairy farm, 6,000-acre crop operation and busy agritourism business called Old McDonald’s Farm in Sackets Harbor, N.Y. Already busy operating these diverse businesses, the Robbins hired a tax preparer to file their taxes. But the preparer was not timely. The Robbins’ wanted to change, but they were concerned about the time needed to build a new relationship. They turned to Farm Credit East, where they already were a borrower.
HOW WE HELPED
Ron was shocked at how easy it was to work with his local Farm Credit East tax preparer, Mark Kellogg. Ron came to us for the tax preparation service, but left with much more. He gained an accurate and timely tax return and a team of financial experts. Now he doesn’t have to explain to his loan officer what his accountant did or what his tax planner said. Instead, at Farm Credit East, he works with knowledgeable experts in all aspects of business financial services.
Ron and Nancy Robbins on North Harbor Dairy in Sackets Harbor, N.Y. They rely on Farm Credit East for timely tax planning and preparation as well as for the tax implications behind various business decisions. “Mark’s understanding of our businesses as well as current tax laws has been advantageous to our operation. It was easy to switch to Farm Credit East to prepare our taxes and get help with tax planning. Mark knows current tax laws so we rely on his advice for the tax implications of business options that we may be considering, which helps us make the best decisions for our business.” – Ron Robbins
