Page 11 - CFAN_Jul2014

IAMA
I am a citrus grower.
I can drive a tractor, fix a pump, build a fence and even ride a horse, if I have to.
I am a farmer.
Therefore I gamble annually and most likely grumble about it.
I am conservative and hold my cards close to my chest.
If the risk is too high I fold and wait quietly for the next
game.
I am stubborn.
There is right and wrong. I know them both on sight.
Iwillsitonmy grapefruit or plow them under rather than give them away.
by AMY POLK
I am second, third, fourth or fifth generation.
I know the ways of the old timers, though sometimes forget their reasons.
I have a degree, though you might not guess it in light conversation.
I went away to college but thought enough of my parents to come back and carry on.
I know how to cherish
a woman, teach a child, love a family...
they are precious to me ... the reasons I toil.
I can quote scripture, cook a meal, enjoy a painting, even play a musical instrument.
YetIamaman’sman more often than not.
If I am fourth generation I might live farther from the land.
I know numbers, the how and why of them.
There is a great burden on me to carry on,
a determination, an underlying fear of failing.
I am more bottom line, less likely to labor in the field,
though I will dig in and
do it myself if push comes to shove.
But don't shove me, and your invoice had better be right.
I will check it carefully.
I give back to my community . . .
because that is the way I was raised and it strengthens my heart and soul.
I know the names of
the weeds that grow in-between the rows and how to get rid of them.
IliketothinkIknowa crook when I see him coming. You can dress me up and take me out,
More and more I have to think outside the box to keep on top.
Rare, but treasured is someone new who is a help to me instead of a hindrance.
My name is Flood, Norris, Wise, Duke, Polk, Holloway, Barben, Wood, Jaques, Hunt, Griffin, Woodley, Snively, McKenzie, Wardlaw, Dickinson, Updike, or Wilson.
We own forty acres to a thousand, or even as far as the eye can see . . .
We love a long, soft rain, the honey bee and mid-season break.
We get nervous
when the soil
blows powdery,
the wind lies, the temperature drops . . .
We are told that this may be a good year for politicians,
FEATURE | agriliving
REPORTING WHAT YOU SOW: SALE OF BUSINESS PROPERTY
As a farm or ranch operating as a sole proprietorship or partnership, the sale of business property can significantly impact your income taxes. Business property is considered to be any asset that is used on your farm or ranch operation, and qualifying property includes equipment and machinery; buildings, land and trees; and draft animals and breeding livestock. This income is reported in a tax return on a separate form, typically Form 4797.
To determine how this income will affect your taxes you must calculate whether you have realized a gain or suffered a loss. Beginning with the property’s cost basis, add the cost of any improvements made and subtract its depreciation to determine the property’s adjusted basis. The total adjusted basis combined with selling expenses will then be compared to the selling price of the property. If the adjusted basis is greater than the selling price, the loss will be subtracted from the business’ income. When there is a gain, this additional income will be subject to tax. All or part of the net income will be subject to ordinary income tax and a portion of the gain may be subject to tax at the capital gain rate.
Though the formula above provides a basic way to determine whether you have a gain or loss, there will always be rules or exceptions that can affect different types of property. For example, when dealing with real property, certain fees or expenses paid are included in your cost basis. Also, keep in mind that depreciation recovery
rules need to be considered. Recapture rules vary depending on the type of property, so it is important to consult your tax advisor when determining the appropriate way to calculate this for your business.
by STEVEN E. CRISMAN
Bio: Steven Crisman is the managing partner of Cross, Fernandez & Riley, LLP’s (C/F/R) Winter Haven office and leads their Agriculture Practice Group. He primarily serves the agriculture, manufacturing, warehousing, and distribution industries. He has specific experience with citrus growers, cattle ranchers, citrus and other horticultural nurseries, citrus harvesters and other support industries as well as watermelon, blueberry and other growers. In addition, Steve provides comprehensive tax and estate planning, attestation and business succession planning services.
Citrus Grower
FloridaAgNews.com
CFAN | 11
but only time will tell for butacampfireandthefeel sure...
of the dew falling are good things.
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