The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
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The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
We are following one last time on our posts from last week on gifting of farm commodities to a charity.
One reader asked if crop-share landlords are allowed to do this. The quick answer is yes, however, the crop-share landlord will get no extra special tax savings.
Whatever amount the landlord gives to charity will have to be reported as income and the landlord will get an offsetting charitable deduction. However, if the landlord does not itemize, then this deduction has no value.
Another reader asked if we need to get a written bill of sale on the transfer. In our opinion, the farmer should provide a written bill of sale for on-farm storage of crops that are donated. We would also recommend working up a bill of sale for crops stored at a local elevator that are then transferred to the charity. Likely, having the elevator transfer the grain out of the farmer's name into the charity on their books is likely sufficient, but it does not hurt to have a written bill of sale too.
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