Estate Planning

OSU Income Tax Schools Summer Update Federal Income Tax & Financial Update Webinar

by: Barry Ward, Director, OSU income Tax Schools

 Significant tax related changes as a result of the new legislation passed in response COVID-19 have created some questions and perhaps consternation over the past few months as taxpayers and tax professionals wrestle with how these many changes may affect tax returns this year and beyond. OSU Income Tax Schools is offering a Summer Update to address these issues and other important information for tax professionals and taxpayers.

The OSU Income Tax Schools Summer Update: Federal Income Tax & Financial Update Webinar is scheduled for August 13th and will be presented as a webinar using the Zoom platform.

John Lawrence, CPA, will teach the course that offers continuing education credits for tax professionals and attorneys. Mr. Lawrence has taught at OSU Extension tax schools for over 20 years and developed this curriculum. He retired from the IRS in 2006 and has since run his own firm in Lawrence, Indiana and Wooster, Ohio.

Webinar Content:

New tax provisions implemented by the CARES Act and Families First Coronavirus Response Act and how to account for them such as the new net operating loss rules, the payroll tax credit, etc. Paycheck Protection Program Loan Issues: loan applications, forgiveness issues and the IRS ruling on loan expenditures that are forgiven under PPP are not tax deductible and how to account for them in preparing a return, etc.

Dealing with the IRS in these difficult times.  Also, what it means to the practitioner as to “dos” and don’ts” regarding the announcement that beginning this summer the IRS will allow the electronic filing of amended returns.

The “Hot IRS Audit Issues – Pitfalls for S Corporations and Partnerships”.  Basis of entities as to the rules and related rulings, how to track basis in these entities, creation of basis where none had been computed in prior tax years, losses in excess of basis and when they are not allowed, definition of an excess distribution, taxation of excess distributions, distribution of appreciated property,  conversion of C corporations to S corporations – do and don’ts, computation of the Built-In Gains Tax, inference and imputation of a reasonable wage for purposes of the computation of the qualified business income deduction, etc.

Other rulings, developments, and cases.

Webinar personnel:

John Lawrence, CPA, John M. Lawrence & Associates: Instructor

Barry Ward, Director, OSU Income Tax Schools: Co-Host & Question Wrangler

Julie Strawser, Program Assistant, OSU Income Tax Schools: Co-Host and Webinar Manager

Details:

OSU Income Tax Schools Summer Update

Federal Income Tax & Financial Update Webinar

(Zoom Webinar)

August 13th, 2020: 10am – 3:30 (Lunch Break: Noon – 12:50pm)

Cost: $150

Registration information and link to the registration page can be found at:

https://farmoffice.osu.edu/osu-income-tax-schools

This workshop is designed to be interactive with questions from the audience encouraged.

Continuing education offered:

Accountancy Board of Ohio (5 hours)

IRS Office of Professional Responsibility (5 hours)

Continuing Legal Education, Ohio Supreme Court (4.5 hours)

 

Farm Office Live Webinar Slated for Thursday, June 11 at 9:00 a.m.

OSU Extension is pleased to be offering the a “Farm Office Live” session on Thursday morning, June 11 from 9:00 to 10:30 a.m.  Farmers, educators, and ag industry professionals are invited to log-on for the latest updates on the issues impact our farm economy.

The session will begin with the Farm Office Team answering questions asked over the two weeks.  Topics to be highlighted include:

  • Updates on the CARES Act Payroll Protection Program
  • Prevent Plant Update
  • Business & Industry CARES Act Program
  • EIDL Update
  • CFAP- update on beef classifications and commodity contract eligibility
  • Dicamba Court Decision Update
  • Other legal and economic issues

Plenty of time has been allotted for questions and answers from attendees. Each office session is limited to 500 people and if you miss the on-line office hours, the session recording can be accessed at farmoffice.osu.edu the following day.  Participants can pre-register or join in on Thursday morning at  https://go.osu.edu/farmofficelive 

 

Farm Office Live Session Slated for Thursday, May 14 from 9:00 to 10:30 a.m.

OSU Extension is pleased to be offering the a “Farm Office Live” session on Thursday morning , May 14 from 9:00 to 10:30 a.m.  Farmers, educators, and ag industry professionals are invited to log-on for the latest updates on the issues impact our farm economy.

The session will begin with the Farm Office Team answering questions asked over the ten days.  Topics to be highlighted include:

  • Updates on the CARES Act, Payroll Protection Program, Economic Injury Disaster Loan (EIDL), and Coronavirus Food Assistance Program (CFAP) Update
  • Corn and soybean budgets
  • Supply and demand balance sheets
  • Other legal and economic issues

Plenty of time has been allotted for questions and answers from attendees. Each office session is limited to 500 people and if you miss the on-line office hours, the session recording can be accessed at farmoffice.osu.edu the following day.  Participants can pre-register or join in on Thursday morning at  https://go.osu.edu/farmofficelive 

Farm Transition in Tasmania

by: Amanda Douridas, Extension Educator

Around this time last year, I had the opportunity to travel to Tasmania to attend and present at the International Farm Management Congress. During one of the tours, we were able to meet with 3 farms who have implemented very successful succession plans. Farm transition is a struggle for many farms not only in the U.S. but across the globe. It was interesting to see the generation in their 30s and 40s as the primary managers of the farm with their parents stepping down in their 50s and 60s (but still working as much as they want to).

At one farm, the older generation decided to become more of an employee showing up at work every day at 7:30 a.m. and taking a wage. He and his 33 year old son still very much talked and discussed the future of the business daily but his son ultimately made the decisions. Another advantage to developing the succession plan at an early stage was most children did not have significant others involved yet, which can be a cause for contention in some cases.

In each instance, on and off-farm children knew where they stood within the operation and were better able to plan for their future. This is crucial for the younger farming generation especially. They know the future of the farm is secure and are able to expand or change to fit their family’s needs.

Another common denominator in the younger generation is nearly all spent 5-10 years working outside of the operation after school. Many worked on another farm or in the agriculture industry gaining valuable ideas and insights to bring back to the farm.

One farmer gave 4 rules for succession planning:

  1. Set a timeline for the plan to be finalized.
  2. Appoint someone outside the family as a mediator.
  3. Everyone needs to come to the table in a conciliatory state of mind.
  4. Start thinking about what you will do for the rest of your life.

The next generation is likely to have a different management style. That does not make it right or wrong. The older generation received the farm at a young age themselves and were able to keep that going with their children.

Lastly, have a retirement party to thank the businesses you’ve worked with and show them the next generation is in charge. This will notify salesmen that they need to stop calling you and allows the next gen to handle business partners in a way that fits the future of the operation.

There is a video available on Youtube featuring one of the families is available at: https://www.youtube.com/watch?v=gIKpne_VSbU&feature=youtu.be

Registration Now Open for May 6 Annie’s Virtual Reunion

By: Amanda Douridas, Extension Educator

Those who have participated in an Annie’s Project understand the camaraderie and friendships that are developed during the course. They also understand the value of education to improve the farm operation. Keeping those two points in mind, the Ohio Women in Ag team is hosting a virtual Annie’s Reunion on May 6 from 9-11 a.m.

The reunion will allow past participants to catch up with each other through virtual breakout rooms and further expand their education through 3 different tracts: Farm Management, Livestock and Food. The opening session will provide resources and inspiration for the unique challenges farms are facing right now. Breakout sessions include grain and livestock market updates, backyard poultry, food prep and preservation and more. Those who have not participated in an Annie’s Project are also invited to attend to learn more!

Registration is open until noon on May 5 at http://go.osu.edu/AnniesReunion. For questions, please contact Amanda Douridas at Douridas.9@osu.edu.

Those who have not had the opportunity to participate in an Annie’s Project are welcome to join us as well. Annie’s Project is a national program focused on farm management education for farm and ranch women. The course consists of 18 hours of education 5 risk areas: financial, human resources, legal, market and production. For more information, visit https://www.anniesproject.org/. Contact Gigi Neal if interested in learning about upcoming programs at neal.331@osu.edu or 513-732-7070.

COVID-19……Changing the Way We Do Business on the Farm

by, Mike Estadt, Agriculture Extension Educator in Pickaway County

The State of Ohio is starting the process of opening for business this week. Farms across Ohio never closed.  With developments recently with the food processing chain breaking down due to the COVID-19 virus one can easily see why it is vitally important to have contingency plans for disruptions to your business no matter how big or small.

Have you given serious thought to what would happen to your farm or agricultural business if you or a key employee(s) were to become ill due to the coronavirus or for that matter any health related event that would prevent you from getting your crop planted, managed through the growing season or harvested in the fall?

In response to this scenario Dr. Dee Jepsen, State Safety Program Leader and Lisa Pfeifer, Educational Program Manager, Agricultural Safety & Health have authored a white paper entitled “Navigating COVID-19 on the Farm” with some excellent ideas and daily best management practices to mitigate risks on your farm.  This paper can be found at: https://u.osu.edu/ohioagmanager/2020/04/23/navigating-covid-19-on-the-farm-best-practices-for-daily-management-of-s-and-people/anitation-deliveries-equipment-repairs

Another great supporting document that should be part of every farm, nursery, and ranch is an operational plan in the case of an emergency.  Quite often the details of complicated farm operations are known only be one person, the farmer.  Tyler Williams, Cropping Systems Extension Educator with the University of Nebraska-Lincoln has developed two comprehensive fillable Word documents for row crop and cow-calf producers available at: https://cropwatch.unl.edu/2020/farm-operations-plans

 

 

OSU Extension to Host Two Northwest Ohio Farm Transition Programs

by: Eric Richer, OSU Extension Fulton County & Sarah Noggle, OSU Extension Paulding County

Are you interested in starting the conversation for a successful farm transition to the next generation?  OSU Extension in Northwest Ohio is holding two separate but identical farm transition meetings to assist farmers in navigating the farm transition process.

The first night will focus on the senior generation (all are invited) including estate and Medicaid planning, communication through the process, farm financial affairs and vision/management transition. The second night will focus on the next generation (all are invited) including entity formation and use in transition planning, a recap of wills & trusts, accounting implications like capital gains, gifting and share valuation, and committing to the process. Local legal and accounting professionals will be teaching sessions along with local county Extension educators.  For either program location, the cost is $20 per farm entity for both nights and including refreshments and materials.

In Fulton County, the 2-night program will be held at the Robert Fulton Ag Center, 8770 State Route 108, Wauseon, OH 43567 on January 28th and February 11th from 6:30-9:00 pm. If you are interested in the Fulton County program, download the registration form at www.go.osu.edu/fultonagprograms2020 or visit www.fulton.osu.edu. Pre-registration closes Friday, January 24th.

In Paulding County, the 2-night program will be held at the Paulding County Extension Office, 503 Fairgrounds Drive, Paulding, OH 45879 on February 20th and 27th from 6:30-9:00 pm. If you are interested in the Paulding County program, visit www.paulding.osu.edu for registration details. Pre-registration closes February 6.

Planning for the Future of Your Farm Program Planned in Tuscarawas Country

by: Chris Zoller, Extension Educator, ANR

A two-evening “Planning for the Future of Your Farm” program will be held February 12 and 19 from 7:00 pm to 9:30 pm each evening.  The program will be held at the Village of Tuscarawas Community Center on Cherry Street in Tuscarawas.

David Marrison, OSU Extension Educator, Agriculture and Natural Resources, Coshocton County, will discuss developing the next generation of managers, family communications, providing income for multiple generations, keeping your farm competitive, and preparing for the unexpected.  These topics will be discussed the evening of February 12.

The evening of February 19 will feature Peggy Hall, Attorney and OSU Extension Ag Law Specialist, and Robert Moore, Attorney, Wright and Moore Law.  Peggy and Robert will discuss farm business structures, estate and transfer strategies, trusts, life insurance, tax planning, and much more.

Registration for the program is $25 per person or $35 per family.  Please make your check payable to OSU Extension-Tuscarawas County, 419 16th St. SW, New Philadelphia, OH 44663.  Please RSVP by February 5.  Questions may be directed to Chris Zoller at 330-339-2337 or zoller.1@osu.edu.

 

Farm Succession Workshop to be held in Kenton, Ohio

by: Jeff Stachler, Agriculture and Natural Resources Extension Educator

A two-day workshop about Farm Transition / Succession is planned for February 3 and 25, 2020.  Participants must attend both days.  The workshop will be held at Mid-Ohio Energy conference room which is located at 1210 Lima Street, Kenton, OH 43326.  Each day the program runs from 10:00 am to 3:00 pm with registration at 9:30 am.

One of Extension’s most knowledgeable individuals regarding Farm Transition is David Marrison from Coshocton County.  On the first Day of the workshop David will discuss about the Key questions to answer when planning for the future of the family farm business, Providing income for multiple generations and developing the next generation of farm managers, Retirement strategies, and much more.

The speakers for the second day are Robert Moore of Wright and Moore Law Co. and Peggy Hall, OSU Field Specialist for Agriculture and Resource Law.  They will focus on topics such as Analyzing risk in today’s world, Estate and transfer strategies, Buy/sell agreements, Tax implications of estate and transition planning, and much more.

Cost of the program is $30 per person made payable to OSU Extension – Hardin County.  It is preferred that you send in your registration fee prior to the program to the following address:  1021 W. Lima Street, Suite 103, Kenton, OH 43326.  If you have questions about registering feel free to call the Hardin County Extension Office at 419-674-2297 or e-mail Jeff Stachler (stachler.1@osu.edu).

 

OSU Extension to Offer Lunch and Learn Webinars

By: Chris Bruynis, Extension Educator

In the age of multi-tasking and convenience, OSU Extension is offering a lunch and learn webinar series for farmers. We have arranged for eight topic and speakers to provide a webinar every Wednesday starting on Wednesday, February 5, 2020 and concluding March 25, 2020. Join us for eight consecutive Wednesdays for this educational series starting at 11:45 am and lasting 1.5 hours. Learn important risk management information during this lunch and learn series from top industry, private sector, and university experts important to the success of farm businesses in 2020 and beyond.

The topics that will be covered include:

February 5:         Using Financial Statements/Ratios to Make Informed Financial Decisions

February 12:      Farm Law 101: Leasing and Financing Agreements

February 19:      Grain Contracts and Markets: What to Use When

February 26:      Where to Start with Workers Compensation Benefits

March 4:             Meeting with a Lender: What Numbers are Important

March 11:           Estate Planning: What are the Tools and Options

March 18:           Grain Marketing Strategies for 2020

March 25:           Tips for Recruiting, Hiring, and Retaining Farm Business Employees

Farmers interested in participating should register at http://go.osu.edu/fm2020 by January 31, 2020.  At this website you can access detailed information on the speakers and the learning objectives for each session. There is also a registration link for the webinar at this site. The cost for all eight topics is $25 per registration and must be paid with credit card at time of registration.

Any question can be directed to Chris Bruynis or Marianne Guthrie at 740-702-3200 or email bruynis.1@osu.edu. We hope this program series will be beneficial to your farm business, whether you attend all the topic presentations or just some of them.