Farm4Profit Podcast

Tax Planning Tips to Keep More Profit

Episode Summary

We get to talk with Kyle Woiwood CPA about what farmers can do to prepare for tax season. How can we utilize the tax law in place to maximize profitability while not carrying the burden of a large tax bill.

Episode Notes

• Please rate, review, and share our podcast!
• What’s happening
  • Farm4Profit Conference was 12/6/19
    • 61% of our attendees filled out an event survey  rated the conference 4.58 out of 5 stars
    • Thanks for a great event
    • Great speakers
    • Speakers were very practical and relatable
    • Lots of good info
    • This needs to be better advertised, more farmers need to attend this meeting and thank you to the sponsors for putting it on
    • Needed Pepsi instead of Coke
    • Please make the speakers repeat all questions
• What’s working for Ag – listener or farmer feedback
  • Jason Mauck presented about his relay cropping and intercropping practices.  This last year he planted “twin Row” 60 iinch wheat and 20 inch beans. In his talk he mentioned using less of the inputs than typical relying on the manure to power the wheat and the cover to reduce weeds.  Ended up with 50 bushel wheat and 80 bushel beans.
  • He also planted corn and beans together and harvested with a platform head.  We have his talked recorded and will be releasing his message and the other speakers messages here before too long!
• Taxes with a capital “T”?
  • Introduce the guest. Kyle “why-wood”  Kyle specializes in Tax Services. He provides expertise in partnerships, corporations, and LLCs. He received his Bachelors in Accounting from the University of Northern Iowa.
  • Memberships & Community Service:
    • Member, American Institute of Certified Public Accountants

Member, Iowa Society of Certified Public Accountants

• What are some of the updates we are facing this year as it relates to ag and ag business?
  • 1031 exchange
  • Section 179 
    • As an accountant what is your take on section 179?
  • Paying Children
  • Making retirement contributions
•  Why is it important to have a tax planning meeting before the end of the year?
•  When you sit down with a new client or perspective client how does that first meeting usually go?
•  After you have worked with clients for a while what are ways you or other accountants can bring value year after year?
• What do you see your top tier of clients doing that your believe got them there or keeps them there.  Both financially and on their farms in general.
•  If a farm operation or farmer is reaching 3-5 years from wanting to retire, what advice would you give to begin working on that plan?
  • Suggestions for transferring assets to the next generation
•  Have you been a part of an open communication stream with a farmer’s advisory team?  What was beneficial in that relationship or what could be the benefits of a structure as such?
•  What are some questions our listeners should have prepared for their meetings with their tax preparers?
•  Are there any other points you’d like to share with our listeners?
•  Summarize
  • Take notes during the interview to summarize.  Hit on how important tax planning can be on the farm. Tie back the obvious to growing farm profitability.
• Challenge
  • Spell out steps for them to begin taking action. Refer to the points made by the presenter.
• Conference Update
• Submit questions and topic suggestions