BONUS MONEY!

FINALLY GOT OUR BONUS MONEY KIND OF SAD THOUGH ON HOW MUCH TAXES YOU HAVE TO PAY THE GOVERMENT WHEN ITS OUR LAND. WE PAY THE PROPERTY TAXES AND WE PAID FOR OUR LAND. IM STILL GRATEFUL FOR THE MONEY JUST CANT UNDERSTAND HOW THE GOVERMENT HAS TO STICK THERE NOSE IN EVERYTHING.WE SIGNED BACK IN DEC 2011.

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Permalink Reply by M. Ros on May 18, 2012 at 3:48pm

i don't know if Shell is involved with Chesapeake. We signed in Feb with our paperwork. Thank you for the reply.

Permalink Reply by Bluflame on May 18, 2012 at 10:28pm

Hi Cathie,

  Assume you meant 2011???

BluFlame

Permalink Reply by CATHIE on May 19, 2012 at 8:16am

SORRY IT WAS 2011

Permalink Reply by Frank Walker on May 23, 2012 at 9:07pm

Oh, man.  Here we go again!!

Permalink Reply by Jay Clark on May 31, 2012 at 12:07am

For 2012, the exemption for federal estate taxes is $5M per person.  Unless there is a change in the law, the exemption is $1M per person as of the first of next year.  For 2012, the exemption for federal gift tax is $5M.  Generally, there is no federal estate or gift tax on transfers to a spouse.

For Pennsylvania, the Inheritance Tax is 4.5% on transfers to lineal descendants.  Farm land receives preferential valuation treatment for Pennsylvania Inheritance Tax similar to real estate taxes (Act 319 or Clean and Green).  Oil and gas interests would be valued separately.

Permalink Reply by Steven Kacerski on May 31, 2012 at 10:10am

For 2012, the estate exemption and lifetime gift exclusion is $5,120,000.  The IRS added a cost of living adjustment to the exemptions from the 2011 levels.

Permalink Reply by Tanya Gabriele on June 11, 2012 at 6:34am

Are people able to write off the entire cost for purchasing a brand new tractor?  Is their a stipulation?

Permalink Reply by Steven Kacerski on June 11, 2012 at 9:58am

It depends on the situation.  The tractor would need to be used in a business (presumably a farm) for the cost to be recovered through various depreciation provisions.  I'm assuming that is the case for the situation you are asking about.

There are two different enhanced cost recovery methods that a person could use to maximize their deductions in 2012.  As the law stands right now for 2012, the only way you could write off the entire cost of a new tractor is through the expensing provisions of Code Section 179.  However, Section 179 has its limitations.  You can't use Section 179 to create a loss, so there must be business income in order to use this provision.  The oil & gas lease bonus is not business income for purposes of this calculation.  The maximum amount of Section 179 a person can take for 2012 is $139,000. 

The other provision a person could use is bonus depreciation.  Currently for 2012, the maximum deduction using bonus depreciation available is 50% of the assets cost.  However, the asset must be brand new property (property with a depreciable life of 20 years of less).  The advantage of bonus depreciation is it can be used to generate a loss unlike Section 179. 

Hope this helps.

Permalink Reply by Tanya Gabriele on June 12, 2012 at 10:20am

Thanks.  My brother has been revitalizing our farm yard by yard and has a fraction of it in production because it need so much clearing, tiling, and reconditioning.  My brother has some very wonderful friends who have been helping him thus far.  Now, we're loking at the prospect of buying our own equipment.

3uq96odaochmjPermalink Reply by 3uq96odaochmj on June 11, 2012 at 10:16am

well, how else do you think the government "pays for" all those juicey perk-laden, high salary government clerical jobs that the O'Bama administration has "saved or created"????

 

Welcome to the 1% :-)

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