In an opinion issued October 10, 2014, the 8th Circuit Court of Appeals in the case of Morehouse v. Comr. overturned the decision of the U.S. Tax Court on the issue of whether Conservation Reserve Program (CRP) payments to non-farmers are subject to self-employment tax. The Tax Court had determined that Mr. Morehouse was “‘engaged in the business of participating in the CRP․ with the primary intent of making a profit’ and that there was a sufficient nexus between this business and the CRP payments, thus categorizing the payments as net earnings from self-employment.” The Tax Court rejected the argument that were rentals from real estate and therefore not included in net earnings from self-employment.

I spent much of last week at the LDS Philanthropies National Planned Giving Council’s Annual Seminar. It is a great conference where Attorneys, Accountants, Wealth Advisors, and Trust Officers from around the country gather to discuss planned giving and the best practices when advising families in regards to wealth transfer.

I am working on putting the finishing touches on materials for a conference I am speaking at in December. Among the topics I will be speaking on is choosing the right entity for your farm or ranch business. There are many considerations in making this choice and often the business objectives can be at odds with the estate planning objectives. It is important to consider and weigh both when making these decisions.