CONSIDER GIFTING COMMODITIES AND LIVESTOCK TO CHARITY
Farmers and ranchers who give commodities and livestock to their favorite charities can receive tax benefits, Marilyn Parker, director of Planned Giving and Finance at Benefits Healthcare Foundation, tells the "Prairie Star".
|Farmers could receive more of a tax benefit by donating the actual commodity or livestock rather than selling it and giving the money to charity, tax experts say.|
"It is better, tax-wise, to give the actual commodity or livestock rather than to sell it, get the money for it and then write a check at the end of the year to a charity," Parker said, noting "most producers can deduct the cost of raising the commodity or livestock as a business expense and forego receiving income from the sale."
By foregoing the income from the sale, they also avoid paying the income and self employment tax on that.
Parker cautions that anyone considering the donation of a commodity or livestock should make sure the charity can accept it. When charities are not able to accept such agricultural donations directly, it may be possible to transfer ownership before a sale is concluded (transfer on paper), with assistance from your grain or livestock buyer. That way, the charity can still benefit.
For more information, contact Parker at (406) 455-5836 or email@example.com.