2020 Farm and Ranch Income Tax/Estate and Business Planning Seminar

Washburn University School of Law presents the two-day seminar "Farm and Ranch Income Tax/Estate and Business Planning Seminar" on Monday, July 20 and Tuesday, July 21, 2020 at Lodge at Deadwood, in Deadwood, South Dakota. This program is appropriate for agribusiness professionals, attorneys, certified public accountants, enrolled agents, and tax practitioners.

This program may be attended either in person or online. In-person attendance is limited to 125 individuals.
NO Kansas CPA credit for the online program due to not having NASBA certification. 

Information: http://washburnlaw.edu/farmandranchtax 

Register: http://washburnlaw.edu/farmandranchtaxregister

Non-attendee urchase materials: http://washburnlaw.edu/farmandranchtaxbook

Co-sponsors: K-State Department of Agricultural Economics and SkySon Financial.

Dates & Location
July 20 - 21, 2020

Deadwood

Lodge at Deadwood
100 Pine Crest Lane
Deadwood , SD

Speakers: Roger McEowen, Paul Neiffer, Elizabeth Crewson Paris, Jeffrey D. Djackson, Brandon W. Ruopp, Marc Vianello, Shawn S. Leisinger.   

REGISTRATION FEE

Paid Through Sunday, July 5, 2020
» $405 both full days
» $275 Monday only
» $275 Tuesday only

Paid On or After July 6, 2020
» $455 both full days
» $300 Monday only
» $300 Tuesday only

Registration Deadline:
Registrations will be accepted until all seats are full. Attendees must pay the registration fee prior to start of the program.

Information: http://washburnlaw.edu/farmandranchtax 

Register: http://washburnlaw.edu/farmandranchtaxregister

Non-attendee urchase materials: http://washburnlaw.edu/farmandranchtaxbook

Speakers

About the Presenters

Roger McEowen, J.D., Kansas Farm Bureau Professor of Agricultural Law and Taxation at Washburn University School of Law in Topeka, Kansas. He is a member of the Iowa and Kansas Bar Associations and is licensed to practice in Nebraska. McEowen publishes the online Washburn Agricultural Law and Tax Report (WALTR) which focuses on legal and tax issues that agricultural producers, agricultural businesses, and rural landowners face and he maintains the Agricultural Law and Taxation Blog. He is also widely published in law reviews and agricultural law publications and conducts agricultural tax and law seminars across the country. McEowen is also heard weekly on RFD-TV.
• Learn more about Roger McEowen.

Paul Neiffer, CPA, is a principal in the Agribusiness Group at CliftonLarsonAllen. Based in Yakima, Washington, he specializes in income taxation and accounting services related to farmers and processors. Neiffer actively consults with farm families on succession planning issues and opportunities, and helps farmers understand the proper use of accounting systems to more profitably run their business. He authors a monthly column for Top Producer magazine and maintains the Farm CPA Today blog.
• Learn more about Paul Neiffer.

The Honorable Elizabeth Crewson Paris was appointed to the United States Tax Court by President George W. Bush in February 2008; she was sworn in on August 1, 2008 and her term on the Court expires July 29, 2023. Paris earned a bachelor's degree from the University of Tulsa in 1980, a law degree from the University of Tulsa College of Law in 1987, and an LL.M. in taxation from the University of Denver in 1993. She is a former partner at Brumley Bishop and Paris, senior associate at McKenna and Cueno, and tax partner at Reinhart Boerner Van Deuren in the firm's Denver office. Paris served as Tax Counsel to the United States Senate Finance Committee from 2000 to 2008. She formerly taught in Georgetown University Law Center's LL.M. Taxation Program and the University of Tulsa College of Law.

Brandon W. Ruopp is a graduate of Simpson College and the University of Iowa College of Law. He is a partner in the law firm of Moore, McKibben, Goodman & Lorenz, LLP in Marshalltown, Iowa, where he has a general practice focusing primarily in the areas of real estate, probate, estate planning and taxation.
• Learn more about Brandon Roupp.

Marc Vianello has diversified experience in accounting, finance, and business since 1975. He is the owner of Vianello Forensic Consulting, LLC (VFC), a CPA firm licensed in Kansas. Prior to forming VFC, Vianello was managing partner of Vianello & Leonard, LLC, a CPA firm licensed in various states, and was employed by the CPA firms Baird, Kurtz & Dobson (and predecessor); Grant Thornton; and Arthur Andersen & Co. The American Institute of Certified Public Accountants has accredited him in the area of business valuations and has certified him in the area of financial forensics. Vianello has testified as an expert witness on many occasions. Since 1982, he has owned and managed a licensed operator of oil and gas wells, and also owns and operates a large farm that grows row crops, hay, and beef.
• Learn more about Marc Vianello.

Shawn S. Leisinger, '99, is the Associate Dean for Centers and External Programs at Washburn Law. Previously he served as Assistant General Counsel to the Kansas Corporation Commission Oil and Gas Conservation Division and as Assistant Shawnee County (Kansas) Counselor. Leisinger has coached the Washburn Law American Bar Association Client Counseling competition team since 2003 and the Negotiation competition team since 2008. He has also taught the Interviewing and Counseling and the Professional Responsibility courses and regularly teaches continuing legal education sessions.
• Learn more about Shawn Leisinger.

Schedule

Schedule

Monday, July 20, 2020

7:30-8:00 a.m. — Check-in and Continental Breakfast

8:00-8:15 a.m. — Welcome, Announcements and Comments from Vendors

8:15-9:15 a.m. — Farm Income Tax Caselaw and IRS Update (McEowen)

What have been the big agricultural tax issues in the courts and with the IRS over the past year? This session provides a review of the significant developments of importance to tax practitioners with an agricultural clientele base.

9:15-10:00 a.m. — GAAP Accounting Update (Neiffer)

This session will update the major accounting changes that will affect farmer's financial statements. Topics will include revenue recognition and lease accounting changes.

10:00-10:20 a.m. — Break

10:20-11:00 a.m. — Miscellaneous Topics (McEowen)

This session takes a look at several topics of importance to farm and ranch clients. Discussed will be tax issues associated with restructuring credit lines; deducting bad debts; forgiving installment sale debt; selected passive loss issues.

11:00 a.m.-Noon — I.R.C. §199A Advanced Planning (Neiffer)

We have now had two tax seasons under our belt on Section 199A. This session will review what we have learned and go over the planning needed to maximize the deduction.

Noon-1:00 p.m. — Lunch (provided)

1:00-2:30 p.m. — A U.S. Tax Court Practice--What You Need to Know Before You File That Petition (Paris)

This session will present information all attorneys and CPAs need to consider if they are interested in representing clients in the U.S. Tax Court. U.S. Federal Judge Elizabeth Crewson Paris will lead a discussion that will include topics such as: successful satisfaction of Tax Court notice pleading requirements; exploring multiple exclusive jurisdictions of the Tax Court; troubleshooting potential conflicts and innocent spouse issues; utilizing S-Case procedures to your client's advantage; and exploring Tax Court website resources available to you.

2:30-2:50 p.m. — Break

2:50-3:30 p.m. — NOLs and EBLs: How Do the New Rules Work? (McEowen)

Legislation enacted in late 2016 changed the rules for net operating losses (NOL) and excess business losses (EBL). How do the new rules work? Topics covered include NOL carrybacks and carryforwards; limitations; guidance (or lack thereof); business and non-business income; and entity sales.

3:30-4:15 p.m. — FSA Advanced Planning (Neiffer)

We sometimes strive to save $10,000 in self-employment taxes not realizing we may cost farmers $250,000 or more of Agriculture Program payments. This session will review the pertinent Farm Service Agency rules on payments and review the planning needed to maximize those payments.

4:15-4:35 p.m. — Like-Kind Exchanges When I.R.C. §1245 Property Is Involved (McEowen)

This brief session will wrap up the day with a discussion of real estate trades when I.R.C. §1245 property (such as grain bins and hog confinement buildings and other structures) is involved in the exchange. What are the rules? How to identify and avoid the traps. What are the necessary forms to be filed?

4:35 p.m. — Adjourn

Wednesday, July 21, 2020

7:30-8:00 a.m. — Check-in and Continental Breakfast

8:00-9:00 a.m. — Recent Developments in Ag Estate and Business Planning (McEowen)

This session covers the key court rulings and developments from the Treasury and IRS impacting decedents’ estates and trusts and the succession of farm or ranch businesses. In addition, the transfer tax changes made by the "Tax Cuts and Jobs Act" will be discussed and their impact on estate/business planning for clients explained.

9:00-10:00 a.m. — Resting in Pieces: Why Family Disharmony is a Frequent Casualty of Most Estate Plans (O'Sullivan)

Agricultural families, as much as any segment of the population, traditionally have had a strong focus on family harmony and personal values. Yet, most attorneys historically have not focused to any significant extent on incorporating these elements in the estate plans of their clients. The result has been a much too high frequency of family disharmony following the disability or death of their clients when issues arise concerning a client's health care or the management and disposition of the client's estate, most particularly upon the disability or death of the surviving spouse. Such disharmony can not only permanently damage family harmony between or among children but can prove quite costly as well by significantly increasing attendant attorney fees and other administrative costs. This session will address the important elements that need to be incorporated in estate plans to greatly reduce such risk and its attendant costs. Of particular focus will be the disposition of farm and other assets at death among family members, the choice of the appropriate fiduciary of the trust or estate, family friendly methods of resolving differences and the appropriate circumstances in which to counsel children regarding their parents' estate plans.

10:00-10:20 a.m. — Break

10:20-11:10 a.m. — Tax and Legal Issues Associated With Trusts (McEowen)

Trusts play an important role in estate planning for farm and ranch clients. What's the best type of trust for a client and why does it matter? How is the charitable deduction affected when the donation to a charity is from a trust? Does the U.S. Supreme Courts Wayfair decision allowing a state to impose sales and/or use tax on a seller without a physical presence in the state mean that a state can tax trust income or distributions a beneficiary receives without a presence in the state? How are various tax provisions impacted when a trust is the taxpayer? How does the new QBI deduction applies to trusts and estates? These questions and more will be addressed.

11:10 a.m.-Noon — Charitable Giving Tax Planning Under the TCJA (McEowen)

The TCJA changed the landscape that can influence charitable giving for clients. What's been the impact on charities? What are the ways to structure gifts to maximize the tax benefits? How does a donor-advised fund work and is it a good approach for a client? These are some of the issues that will be discussed in this session.

Noon-1:00 p.m. — Luncheon (provided)

1:00-2:00 p.m. — Estate and Business Planning in Second (and Subsequent) Marriage Situations (McEowen)

A married couple's estate planning goals and objectives often dovetail – benefit the surviving spouse for life with the remaining property at the death of the surviving spouse passing to the children. But, estate planning when a second marriage (either as a result of death or divorce) is involved becomes more complex – especially when each spouse has children from the prior marriage. The estate planning techniques of first marriage situations often don't work when a second marriage is involved. This session explores the potential problem areas, including the need to redraft wills and trusts, retitle assets, modify beneficiary designations and restructure entities.

2:00-2:30 p.m. — Common Estate and Business Planning Mistakes (McEowen)

This session takes a brief look at what farm and ranch families often do wrong when it comes to planning for the future, particularly when the goal is to keep the farming or ranching operation in the family into subsequent generations. How can these mistakes be avoided? What are the easy problems to fix? What issues require more attention and work? How to help clients avoid the common mistakes is the goal of this session.

2:30-2:50 p.m. — Break

2:50-3:50 p.m. — Estate and Resource Planning for a Disability and Long-Term Care in Farm Families (O'Sullivan)

One of the most neglected aspects of estate plan in agricultural families is resource planning for the very high risk of long-term care for one or both spouses. There is an approximate 60% chance that at least one spouse will at some time need long-term care and an approximate 20% chance that at least one spouse will need such care for more than three years. Only a small percentage of farm families have long-term care insurance adequate to provide for such a costly event and such families often also lack the liquidity to meet that need. Fortunately, with proper estate planning, federal and state Medicaid eligibility rules often can be availed of to provide such resources without requiring agricultural assets to be first utilized for such care, as well as to greatly reduce the risk of "estate recovery" by the state against the estate of the surviving spouse with respect to Medicaid benefits paid to one or both spouses. Not only are most agricultural estate plans ill-equipped to address these issues, but they often arise when one or both spouses is under a mental disability or deceased, thereby limiting the estate planning options that would otherwise have been previously available to address them. Tim will address these Medicaid eligibility rules and discuss the important estate planning documents and their internal provisions that need to be executed and incorporated, respectively, while both spouses possess the requisite capacity if an agricultural estate plan is to comprehensively guard against the adverse financial import of a long-term disability of one or both spouses.

3:50-4:45 p.m. — The Next Hundred Years: Will the Family Farm Survive? How Can We Help Make Sure It Does? (Miller)

The family farm is uniquely connected to the history and values that define who we are as Americans. The collective desire to preserve the institution of the family farm is reflected in extensive legislation adopted at both the state and federal levels. Despite that, the family farm is disappearing. The threats driving that trend are numerous: the skill needed to deploy new technologies in production; the cost of capital to scale; the uncertainty of farm program payments; the increase in the cost of farm equipment as well as other costs of production; income tax policies that incentivize practices that increase risk; the increase in the price of farmland; increasing environmental regulation; the uncertainty and lack of control over commodity prices; the uncertainty of weather patterns and the threat of climate change; the uncertainty of immigration policy; uncertainty in the future of state and federal estate tax law. The risks of farming are massive. To survive, farming has to move from a way of life to a business that is managed professionally using modern business principles. Many farmers are overwhelmed by and are unable to deal with these challenges. The rate of suicide among farmers is higher than in almost any other profession. In this final session, we make the case that the challenges facing family farms today can be successfully managed and that the family farm can not only survive, but thrive for multiple generations. The techniques that make this possible require the help of trained professionals who understand the tools and strategies that can mitigate the very significant risks that farm and ranch clients face daily. We will explore the very important role we can play in protecting and preserving this uniquely valuable American institution.

4:45 p.m. — Adjourn

Tuesday, July 21, 2020

7:30-8:00 a.m. — Check-in and Continental Breakfast

8:00-8:05 a.m. — Welcome and Announcements

8:05-9:00 a.m. — Farm Estate and Business Planning Caselaw and IRS Update (McEowen)

This session provides an update of key developments in the courts and the IRS over the past year that impact estate, business, and succession planning for farmers and ranchers. It's a fast-paced survey of cases and rulings that practitioners must be aware of when planning farm and ranch estates and succession plans.

9:00-10:00 a.m. — Incorporating a Gun Trust Into An Estate Plan? (Jackson)

This session explores the basic operation of a gun trust to hold firearms and the mechanics of such a trust's operation. It will discuss the reasons to create a gun trust; their effectiveness as an estate planning tool to hold firearms; common myths and understandings about what a gun trust can do; special rules associated with gun trusts; and client counseling issues associated with gun trusts.

10:00-10:20 a.m. — Break

10:20-11:35 a.m. — Retirement Planning (Ruopp)

This session involves a comprehensive review of the rules concerning contributions, rollovers, and required minimum distributions for IRAs and qualified retirement plans following the passage of the SECURE Act.

11:35 a.m.-Noon — Common Estate Planning Mistakes of Farmers and Ranchers (McEowen)

This session looks at common errors that can derail the estate and business succession plans of a farm or ranch family. These are "foot-faults" that can easily be avoided but are nevertheless fairly common. With the many technical rules that govern estate and business planning, sometimes the "little things" loom large. This session reviews common issues that must be addressed with clients.

Noon-1:00 p.m. — Lunch (provided)

1:00-1:30 p.m. — Post-Death Management of the Family Farm or Ranch Business (McEowen)

What are the issues that must be dealt with after the death of family member of the family business? This session examines probate administration issues that commonly arise with respect to a farm or ranch estate, including the application of Farm Service Agency Rules and Requirements. Also addressed will be distributional and tax issues; issues associated with partitioning property; handling marital property and disclaimers; potential CERCLA liability; and issues associated with estate tax audits.

1:30-2:40 p.m. — Estate and Gift Tax Discounts for Lack of Marketability (Vianello)

The appropriate amount of discount for lack of marketability ("DLOM") has long been critical for valuation professionals, investors in and issuers of illiquid securities, financial statement issuers and auditors, the courts, and others. The determination of an appropriate discount has been extensively discussed and debated. Yet, before Mr. Vianellos's research, an empirical study using defined and objective data that could actually justify a methodology for a lack of marketability discount was lacking. This session is a summary of Mr. Vianello's research into the market evidence of discounts for lack of marketability. The presentation will challenge broadly used methodologies for determining discounts for lack of marketability, and illustrate why such discounts should be supported by probability-based option modeling.

2:40-3:00 p.m. — Break

3:00-3:25 p.m. — Valuation of Farm Chattels and Marketing Rights (McEowen)

The valuation of tangible personal property in an agricultural estate presents unique issues. Similarly, the valuation of growing crops and livestock can present challenges. This session provides some basic guidelines for determining estate tax value of such property.

3:25-4:25 p.m. — Ethical Issues Related to Risk: Understanding and Advising Clients (Leisinger)

This session examines ethical issues related to risk in the legal context. The presentation will look at how different people, and different attorneys, approach risk taking through a live exercise and application of academic risk approaches to the outcomes. Then, the discussion looks at how an attorney can get competent and ethically advise clients concerning risk decisions in practice. Participants will be challenged to contemplate how their personal approach to risk may impact, or fail to impact, client decisions and choices.

4:25 p.m. — Adjourn

 

 

More information:

Washburn University School of Law
Continuing Legal Education
1700 SW College Ave.
Topeka, KS 66621
(785) 670-1105
cle@washburnlaw.edu