Crop insurance payments may affect tax planning
Author
Published
11/7/2022
Corn and soybean yields have been better than expected for many farmers in Iowa for 2022, but for those who were caught in the drought areas, reduced yields will trigger crop insurance payments.
A farmer who uses the cash accounting method may elect to postpone reporting insurance proceeds on damaged crops from the year of damage to the following year if 50% or more of the crop is normally sold the year following production. This is determined on a crop-by-crop basis. It is done by making the election IRC Sec. 451(d), Reg. 1.451-6 on the tax return...
Members Only Content
Join Iowa Farm Bureau or login to view all members only content and receive other member benefits.