Page 24 - CFAN_Apr2014

AGRIGOV | from page 20
WORDS TO THE WISE

ON FILING FEDERAL
TAXES FOR YOUR FARM talking with
When one of our
BUSINESS, PART II
inquire
field staff, make sure you
about cost share
different
WHEN ADVISING CLIENTS on record programs
that are available to
retention policies, these questions are common-
ly brought up: What documents should I keep? help you implement BMPs as well

How long should I keep them? Is one year long enhance the quality
enough? Ten? Surely I don’t have to keep them as of

indeinitely, do I? Let’s address these questions your operation.
with tip two.
GET MORE
information at
TIP TWO: THE WHERE, WHEN, HOW AND
WHY OF STORING DOCUMENTS
Some examples of BMPs are taking soils, and in some www.loridaag
waterpolicy.com.
First of, you need to store your documents cases tissues, test when you fertilize. With the price of

in a safe place. If everything is a hard copy, fertilizer, you do not want to waste it. Keep your feed
make sure it’s iled under lock and key. If it’s bunk and mineral box at least 100 feet from sensitive

digital or on the cloud, make sure it’s encrypted. areas. If available, install water troughs to draw cattle out When talking with one of our ield staf, make sure
he standard length of time to keep records of the creeks and streams. hese are just a few practices you inquire about diferent cost share programs that are

that support income and deductions (this that help improve water quality. It is not designed to available to help you implement BMPs as well as enhance
would include sales invoices, vendor bills and make you jump through hoops. hey are just simple the quality of your operation. One of the biggest questions

payments, payroll records and bank statements) practical management tips to improve quality.
we receive with this being another government program:
is seven years. Retaining such documents for Enrolling in BMPs can really be an asset to your Is this going to allow an open door for government

seven years will help you in the event of a loss operation. Further according to state law it gives agencies to come onto your property? he simple answer
carry back or an IRS or other governmental you a presumption of compliance for water quality is “NO.”

agency examination. Not all documents are standards. Which means in the future, the Department Florida farmers and ranchers have already enrolled 3.5

subject to this rule and there are other types that of Environmental Protection may be required to test million acres of their own lands into FDACS BMPs. hat
should be stored permanently. hese include waters coming in or of one’s property for certain means you will not be alone. It is a great opportunity to

deeds, construction blueprints, tax returns and pollutants to meet numeric criteria’s for Total Daily give Florida’s agriculture another leg to stand on when it
other documents that support the cost basis in Maximum Loads (TMDLs) of certain pollutants. comes to defending our lands and quality way of life. he

inherited or purchased property.
With your enrollment with FDACS BMPs, you will be Oice of Agricultural Water Policy is here to ofer help and
Keep in mind that there are many considered to be in compliance by state law.
assistance for agriculture producers. Join the thousands

reasons other than tax audits to have good that have already enrolled and let’s keep agriculture in the
documentation, including insurance claims, positive spotlight.

lawsuits, divorce, and if you decide to sell your Let us get you enrolled. You can get more

business in the future.
information at www.loridaagwaterpolicy.
In next month’s column, I’ll provide some com or contact me directly with any CONTACT MATT at (863) 773-2164 or

words to the wise for when your farming hobby questions. ag
email Matthew.warren@freshfromlorida.com.
might be considered a taxable business in the

eyes of the IRS.

WATER QUALITY BMPs IS ENDORSED BY:

by STEVEN E. CRISMAN

Bio: Steven Crisman is the managing partner of Cross, Fernandez & Riley,

LLP’s (C/F/R) Winter Haven oice and leads their Agriculture Practice
Group. He primarily serves the agriculture, manufacturing, warehousing
and distribution industries. He has speciic 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.

24 | CFAN
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