A myriad of legal issues have faced agriculture in recent years, including Supreme Court decisions on WOTUS and Proposition 12. An ever-changing tax code is also the norm. Roger McEowen, professor of agricultural law and taxation, Washburn University School of Law, addressed these topics Tuesday at Big Iron. Large farms that can qualify for more than one government payment limit should consider a general partnership. “FSA has a rule that says if your operating entity has any kind of liability limitationy, like a C Corp, an S Corp or LLC, you get one payment limit regardless of how many payments you’re eligible for,” said McEowen. “Lets say you are eligible for $500,000 of payments and you’re going to have to spread it across all of the owners of the business.” A general partnership can extend payments to the different entities and maximize the government payments. However, McEowen said every family situation is unique and that must drive the process. Watch the entire forum online.
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