Will We Get Final Guidance From USDA This Week
It appears we may finally get guidance on Qualified Pass-Through Entities soon
First, I will be on AgriTalk today discussing some of the key guidance that we need to get from USDA on qualified pass-through entities and related adjusted gross income (AGI) limits for S-corporations and LLCs and other limited entities.
As we have discussed before many times any entity taxed as a partnership and S-corporations will now have limits based on the number of owners. However, remember that unless the owners are all equal and actively engaged in farming, you will not see full payment limits.
Also, if the AGI limits remain for LLCs and other entities taxed as a partnership, you may still need to remain a general partnership if your entity’s net income exceeds $900,000. If it exceeds the limit, you will get no payment which is even worse.
We will keep you posted once it comes out and we will post a link to my AgriTalk discussion later today.