Gifts of Grain and Livestock
Shickley
In southeast Nebraska, farmers realized significant tax savings by donating grain directly to the Shickley Community Foundation Fund.
With grain prices rising to their highest levels in the past 10 years, the advantages for ag producers to gift agricultural commodities to a community foundation fund are greater than ever. Many Nebraska farmers and ranchers have found that they can save significant taxes by contributing commodities to a charity instead of selling the commodities and making a cash contribution.
When an agricultural producer transfers legal ownership of the commodity to a charity before it is sold, the producer will not have taxable income from a sale, thus minimizing taxes. The producers are still able to deduct the entire cost of the production of that commodity on Schedule F. Savings may be realized on federal income tax, state income tax and self-employment tax, depending on the producer’s specific circumstances.
NCF affiliated funds who have benefited from gifts of grain and livestock include the communities of Chambers, Diller, Shickley, and Thedford. Farmers and ranchers should get the professional advice of their tax advisor before making these types of gifts. In addition, it is important to notify the Nebraska Community Foundation prior to delivering the commodity to the marketplace so specific procedures that need to be followed can be communicated.
For more information, please contact Les Long, NCF Controller at (402) 323-7346 or .(JavaScript must be enabled to view this email address).
