Tax

Income Tax Schools at The Ohio State University Announces Summer Income Tax School Webinar
Barry Ward & Jeff Lewis, OSU Income Tax Schools
An “Update on Current Tax Issues and Law Changes” along with a section on “Taxpayers in Trouble” are the focus of the upcoming Summer Tax School Webinar featured by Income Tax Schools at The Ohio State University.
This webinar is scheduled for August 11th and registration is now open. The registration page can be accessed at: go.osu.edu/summertaxschool.
This Summer Tax School is designed to update tax preparers about current tax issues, new law changes and tax legislation. This school will also include a section on working with “taxpayers in trouble”.
The morning session will focus on update issues and include:
- Updates on current tax issues at the federal, state and municipal level
- Updates on the recently passed legislation and/or progress on pending tax legislation
The afternoon session on working with “Taxpayers in Trouble” will enable you to:
- Select relevant information from Forms 1099-A and 1099-C
- Identify the proper IRS form on which to report the deemed sale of the foreclosed property
- Determine if a taxpayer is insolvent
- Explain the tax treatment of cancellation credit card and other consumer debt
- Complete Form 982
Webinar Agenda for August 11th:
9:00 Webinar room opens
9:20 Welcome and introductions
9:30 Webinar begins
Noon Lunch break
12:40 Webinar resumes
2:30 Webinar concludes
Continuing Education Credit Hours: 5
Continuing Legal Education Hours: 4
Instructors for this webinar include Jahn Lawrence and Melinda Garvin.
Registration cost is $200 and includes 5 hours of Continuing Education (CPE) and 4 hours of Continuing Legal Education (CLE). Registration information and the online registration portal can be found online at: go.osu.edu/summertaxschool.
Participants may contact Barry Ward at 614-688-3959, taxschools@osu.edu or Jeff Lewis at 614-292-2433, taxschools@osu.edu for more information.
By: David L. Marrison, Field Specialist, Farm Management, Barry Ward, Director of the OSU Income Tax Schools, and Jeff Lewis, Attorney and Program Coordinator- OSU Extension.
It is tax season! The Internal Revenue Service (IRS) expects over 140 million individual tax returns to be filed by the April 15, 2025 deadline. With tax returns set to be accepted by the IRS starting January 27, it's crucial for individuals and businesses to stay on top of important tax reporting deadlines.
One of the key requirements during this time is the proper reporting of income through 1099 forms. These forms, which report various types of non-wage income, need to be furnished to taxpayers by January 31. Additionally, copies also need to be sent to the IRS by the January 31st deadline (with a few exceptions) to avoid penalties and ensure timely processing of tax returns.
This article will provide an overview of 1099 forms, highlighting the specifics of the 1099-NEC, 1099-MISC, and 1099-K forms. Additionally, we will share reporting deadlines, penalties for non-reporting, and provide resource links from the IRS.
What is a 1099 Information Return?
A 1099 form is an information return used by businesses, financial institutions, and other organizations to report various types of income paid to individuals who are not employees. These forms are typically issued to independent contractors, freelancers, and vendors to report payments made for services rendered, interest earned, dividends, and other income types.
These returns help ensure that individuals and entities report income correctly on their tax returns. There are over 20 different 1099 forms. The major forms which farm families may receive include:
- 1099-NEC Non-employee compensation
- 1099-MISC Miscellaneous income
- 1099-K Income from third party vendors
- 1099-G Unemployment compensation or other government programs
- 1099-INT Interest income
- 1099-DIV Investment dividends and distributions
- 1099-PATR Taxable distributions from cooperatives
- 1099-S Proceeds from real estate transactions
1099-NEC
One of the most common 1099 forms used is the 1099-NEC, which reports payments to non-employees. The form is required to be issued when compensation totaling more than $600 (per year) is paid to a nonemployee for certain services performed for your business. If the following four conditions are met, you must generally report payment for nonemployee compensation on Form 1099-NEC:
- You made the payment to someone who is not your employee.
- You made the payment for services for your trade or business (including government agencies and nonprofit organizations).
- You made the payment to an individual, partnership, estate, or in some cases, a corporation.
- You made payments to the payee of at least $600 during the year.
Examples of “nonemployee compensation” could include hiring a neighboring farmer to harvest, spray, or plant your crops or independent contractors such as crop consultants, mechanics, accountants, and veterinarians. Payment for parts or materials used to perform the service (if the supplying of the parts or materials was incidental to providing the service) is included in the amount reported as nonemployee compensation.
Reporting is needed for payments made to unincorporated businesses (ie. sole proprietorship or a LLC that has elected to be taxed as a sole proprietor or partnership) for compensation of $600 or greater. Generally, payments to a corporation, or a LLC which has elected to be taxed as a corporation, do not require a 1099-NEC to be issued. Two exceptions which should be noted are for payments of $600 or greater to an attorney or veterinarian, regardless of business entity (corporation or unincorporated), need to be reported on the Form 1099-NEC.
If you are required to file a Form 1099-NEC, you must furnish a statement to the recipient and to the IRS by January 31 of each year or the next business day, if the due date is on a weekend or holiday. For the tax reporting year of 2024, the form is due January 31, 2025.
A form 1099-NEC can be issued even if the payment is below the $600 threshold or is to a party that you are in doubt as to whether you are required to issue this informational return. There are no prohibitions or penalties for doing this.
Previously, business owners would file Form 1099-MISC to report non-employee compensation. As a historical note, the Form 1099-NEC was re-introduced in 2020. It was previously used by the IRS until 1982 when the IRS added box 7 to Form 1099-MISC and discontinued the 1099-NEC form. Now, this compensation is listed in Box 1 on the 1099-NEC.
A reminder that greater scrutiny has been given to the improper classification of an employee as an independent contractor. It is your duty to make sure that you have classified properly. For tax purposes, the IRS provides guidance on making this determination through behavior control, financial control, and the relationship of the parties. Details can be found in IRS publication 1779 located at: https://www.irs.gov/pub/irs-pdf/p1779.pdf
Form 1099-MISC
The Form 1099-MISC is used to report a variety of income payments made to others and are made during your trade or business (not personal). These include, but are not limited to:
- At least $10 in royalties (box 2)
- At least $600 in:
- Rents (box 1)
- Prizes and awards (box 3)
- Medical and health care payments (box 6)
- Crop Insurance proceeds (box 9)
Reporting is needed for payments made to unincorporated businesses (ie. sole proprietorship or a LLC that has elected to be taxed as a sole proprietor or partnership) for compensation for each reporting thresholds ($600 or greater for rents or $10 for royalties). Generally, payments to a corporation, or a LLC which has elected to be taxed as a corporation, do not require a 1099-MISC to be issued. However, there are exceptions as noted previously.
One question, we receive from farmers is “do I need to issue a 1099 to the landowners which I rent ground from?” As a farmer, if you made the payment for services for your trade or business (ie. your farm business), then you will need to issue a 1099-MISC to landowners who receive $600 or more in land rental payments (in aggregate).
The reporting deadlines for the 1099-MISC forms are a little different than the 1099-NEC. The 1099-MISC must be to the recipient by January 31 (similar to 1099-NEC) but are not due to the IRS until February 28 for paper copies or March 31 for e-filed returns.
1099-K
The 1099-K form may be a new form to some of our farm managers. Form 1099-K tracks income made from selling goods or providing services via payment apps and online marketplaces. Examples include (but are not limited to) PayPal, Venmo, Square, and Ebay. Payment card companies, payment apps, and online marketplaces are required to fill out Form 1099-K and send it to the taxpayer and to the IRS by January 31. You will receive a 1099-K if:
- If you take direct payment by credit or bank card for selling goods or providing services. If customers pay directly by credit, debit or gift card, you will receive a Form 1099-K from the payment processor or payment settlement entity, no matter how many payments received or how much they were for.
- A payment app or online marketplace is required to send you a Form 1099-K if the payments received for goods or services total over $5,000 (2024 limits). However, they can send you a Form 1099-K with lower amounts.
Please note the reporting thresholds will change going forward. Third-party payment network transactions previously only needed to be reported for payees with more than 200 transactions and $20,000 in aggregated payments. The American Rescue Plan Act of 2021 repealed this threshold and requires reporting for aggregate payments of $600 or more, regardless of the number of transactions.
The IRS is taking a phased in approach to the implementation of the American Rescue Plan Act of 2021 and guidance was provided on November 26, 2024 (https://www.irs.gov/pub/irs-drop/n-24-85.pdf). The phased-in reporting thresholds are:
- $5,000 in 2024
- More than $2,500 in 2025
- More than $600 in calendar year 2026 and thereafter.
Whether or not you receive a Form 1099-K, you must still report any income on your tax return. If you accept payments on different platforms, you could get more than one Form 1099-K. Personal payments from family and friends should not be reported on Form 1099-K because they are not payments for goods or services.
Additional Note:
Starting in tax year 2023, if you have 10 or more information returns, you must file them electronically. Electronic copies can be submitted through the IRIS Taxpayer Portal at http://irs.gov/iris or through a third-party software provider.
Penalties
If you fail to file a correct information return by the due date (to the IRS and/or taxpayer) and cannot show reasonable cause, you may be subject to a penalty. Penalties are changed for each information return which is failed to be filed to the IRS on time and to each payee (a penalty for each). These penalties can range from $60 to $660 depending on the number of days which the filing is late. Additional penalties can also be assessed for intentional disregard. Interest is also charged. More details can obtained at: https://www.irs.gov/payments/information-return-penalties
IRS Resources:
The following resources are available from the IRS with regards to the informational returns discussed in this article.
Publication 1220: https://www.irs.gov/pub/irs-pdf/p1220.pdf
1099-NEC: https://www.irs.gov/forms-pubs/about-form-1099-nec
1099-MISC: https://www.irs.gov/forms-pubs/about-form-1099-misc
1099-K: https://www.irs.gov/businesses/understanding-your-form-1099-k
1099 Penalties: https://www.irs.gov/payments/information-return-penalties
Disclaimer:
The information provided in this article is for educational purposes. This article was designed to provide accurate tax education information. Farm managers are encouraged to seek the assistance of qualified tax professionals with the completion of their taxes.
If you and your family are grappling with the critical issue of how to transition the farm operation and farm assets to the next generation, OSU Extension is here to help. Attend one of our “Planning for the Future of Your Farm” workshops this winter to learn about the communication and legal strategies that provide solutions for dealing with farm transition needs and decision making. We’ve scheduled both a webinar version and several in-person options for the workshop.
This workshop challenges farm families to actively plan for the future of the farm business. Learn how to have crucial conversations about the future of your farm and gain a better understanding of the strategies and tools that can help you transfer your farm’s ownership, management, and assets to the next generation. We encourage parents, children, and grandchildren to attend together to develop a plan for the future of the family and farm.
Teaching faculty for the workshop are David Marrison, OSU Extension Farm Management Field Specialist, and Robert Moore, Attorney with the OSU Agricultural & Resource Law Program. Topics which will be covered in the workshop include:
- Developing goals for estate and transition planning
- Planning for the transition of control
- Planning for the unexpected
- Communication and conflict management during farm transfer
- Federal estate tax challenges
- Tools for transferring assets
- Tools for avoiding probate
- The role of wills and trusts
- Using LLCs
- Strategies for on-farm and off-farm heirs
- Strategies for protecting the farmland
- Developing your team
- Getting your affairs in order
- Selecting an attorney
Webinar version. You and your family members can attend the workshop individually from the comfort of your homes. The four-part webinar series will be February 3, 10, 17, and 24, 2025 from 6:30 to 8:00 p.m. via Zoom. Pre-registration is required so that a packet of program materials can be mailed in advance to participating families. Electronic copies of the course materials will also be available to all participants. The registration fee is $99 per farm family. Register by January 22, 2025 in order to receive course materials in time. Click here to register or go.osu.edu/successionregistration
In-person workshops. Our local Extension Educators are hosting in-person workshops at five regional locations across Ohio during the upcoming winter. Registration costs vary by. The in-person workshops will be held on
- January 23, 2025- Putnam County (9:00 to 4:00 p.m.)
- February 6, 2025- Pickaway County (10:00 to 4:00 p.m.)
- February 18, 2025- Clark County (9:00 to 4:00 p.m.)
- March 11 & 13, 2025- Wayne County (6:00 to 9:00 p.m.)
- March 13 & 18, 2025 – Licking County (6:00 to 9:00 p.m.)
Registration is required. Find registration information for all workshops at go.osu.edu/farmsuccession
Thank you! OSU Extension would like to thank Ohio Corn and Wheat for their generous sponsorship of these programs.
We hope you’ll join us to move forward on planning for the future of your farm!
For questions about the workshop, please contact David Marrison at marrison.2@osu.edu or 740-722-6073.
Are you a farmer or farmland owner wanting to learn more about recent tax law changes and proposals? If so, join OSU Extension Educators Barry Ward, Jeff Lewis, Robert Moore and David Marrison on Friday, December 6 at 10 a.m. for a special edition of our Farm Office Live webinar presented by OSU's Income Tax School. The team will discuss tax issues that may affect farmers and farmland owners for the 2024 tax season and beyond.
Topics include:
- Farm Economy and Tax Planning
- Tax Planning in Low Income/Drought Years
- Beneficial Ownership Information (BOI) Reporting
- Pending Sunset of Larger Estate Tax Exclusion Amount (Unified Credit)
- Residual Fertility/Fertilizer Deduction
- Clean Fuel Production Credit (I.R.C. § 45Z)
- Current Ag Use Valuation (CAUV) Changes in 2024
- IRC § 45Q - Credit for Carbon Oxide Sequestration
- Farm Loan Immediate Relief Under Inflation Reduction Act: Income Tax Options Triggered by Corrected 1099s
- Taxability of USDA Discrimination Financial Assistance Awards
- Pending Expiration (Sunsetting) of other Tax Cuts and Jobs Act (TCJA) Provisions
This two-hour program will be presented in a live webinar format via Zoom. Individuals who operate farms, own property, or are involved with renting farmland are encouraged to participate. Registration is necessary and if you're a regular Farm Office Live attendee, you're already registered for the webinar. For others, register at https://go.osu.edu/farmofficelive.
Tags: tax, Ag Tax, Farm Tax, Income Tax, cauv, IRC
Comments: 0

Barry Ward, Leader, Production Business Management
Writing this feels like déjà vu. It feels like we’ve lived through this before and for good reason. The article I wrote last year about significant increases in Current Ag Use Value of farmland can be repeated almost word for word.
Again, large increases in the Current Ag Use Value (CAUV) of farmland in 2024 will result in higher property taxes for farmland owners in 2025. Twenty-four of Ohio’s eighty-eight counties will see property tax increases in 2025 due to higher CAUV. Several factors have led to this increase in ag use valuation. The average current ag use value is expected to be $1,616 per acre across all soil types (proposed final value). This compares to a value of $759 per acre in 2021 which represents an increase of 113%.
The Current Agricultural Use Value (CAUV) Program is a differential real estate tax assessment program for owners of farmland. The program allows for the assessment value of farmland parcels to be taxed according to their use value in agriculture (or their value related to income from agriculture) rather than the market value (defined as the value if the land were sold by a willing seller to a non-related willing buyer). To arrive at this “use value”, a formula is used that includes several variables to capitalize the net income from agricultural products.
Landowners with farmland and woodlands in Ohio are eligible to sign-up for the CAUV program through their county auditor’s office if they meet the requirements.
There are two paths for a parcel to qualify for the Current Agricultural Use Valuation (CAUV) Program. To qualify for CAUV, land must meet one of the following requirements during the three years preceding an application.
•Ten or more acres must be devoted exclusively to commercial agricultural use; or
•If under ten acres are devoted exclusively to commercial agricultural use, the farm must produce an average yearly gross income of at least $2,500.
Each of the 3517 different soil types in Ohio is assigned a current ag use value (CAUV) each tax year. The value represents the expected net present value of an acre of land devoted solely to agricultural production for the dominant crops in Ohio. To determine this value, an average of yields and prices for corn, soybeans, and wheat is used to determine gross income. Non-land costs are then subtracted from gross income for a measure of net income. Finally, this net income is divided by a capitalization rate based upon recent values of farm interest and equity rates.
Counties are subject to an update in CAUV every 3 years so only a portion (24 of the 88) have been updated in 2024 that will impact 2025 property taxes. As counties see updated values only every three years, there is the opportunity for large changes as many farmland owners will see this year.
Several factors have led to much of this increase in ag use valuation. Higher crop market prices and increased crop yields included in the formula have been significant drivers in the higher current ag use values. Price increases have been substantial as compared to the prices used in the 2021 calculations (the last time these counties underwent CAUV updates). Corn price has increased 22.6%, soybean price increased 18.8% and wheat price increased 16.0%.
Although we have seen substantial decreases in crop market prices this year, the prices used in the formula don’t reflect this yet. The prices used in the formula are based on a 7 year “olympic average” of United States Department of Agriculture (USDA) marketing year average prices. The higher crop prices in 2020 through 2022 continue to keep this price variable high in spite of recent falling crop prices.
Yields used to determine values for each soil type increased 8.0% for corn, 5.7% for soybeans and 8.5% for wheat as compared to the yields used for the 2021 calculations.
Although Ohio farmers have seen significant increases in input costs since 2021 and the Ohio Crop Enterprise Budgets reflect this, there haven’t been enough years of these higher costs to significantly impact the cost variables used in the formula.
Low interest rates (capitalization rate) have also contributed to the increasing current ag use values as recent higher interest rates aren’t yet fully represented in the formula. The capitalization rate used in the formula in 2024 CAUV calculations was an increase at 8.2% as compared to the rate of 7.8% used in 2021, the last time these counties saw an update in CAUV. Recent higher interest rates will continue to increase the capitalization rate (denominator in the CAUV calculation) in future years which will help to moderate current ag use values.
For a detailed look at the variables and calculations that are used to determine CAUV for farmland, access the Ohio Department of Taxation online publication “2024 Current Agricultural Use Value of Land Tables Explanation of the Calculation of Values for Tax Year 2024”.
The Ohio Department of Taxation annually publishes this explanation of the CAUV valuation method complete with the measures used to calculate CAUV and examples of the calculations for certain soil units for the present year. This year’s document is titled “2024 Current Agricultural Use Value of Land Tables Explanation of the Calculation of Values for Tax Year 2024” and is available online at:
https://tax.ohio.gov/government/real-state/cauv
Woodlots
Those with woodlots will likely see decreases in CAUV for their parcels which will decrease property taxes on these parcels in 2025. This year the Ohio Department of Taxation updated the CAUV woodland clearing cost from $1,000 per acres to over $4,000 per acre based on data from the Ohio Forestry Association (OFA) and inflation data. The larger land clearing costs will result in all woodlands to be valued at the minimum CAUV of $230 per acre in 2024.
Legislative Changes
There has been quite a lot of conversation about legislative changes in determining property taxes in Ohio. There are a number of bills that have been initiated that address changes in valuation and/or taxation of property but none have made much progress. One bill that includes some language that would impact CAUV is Ohio House Bill 447.
Ohio House Bill 447 would modify and expand property tax homestead exemptions, gradually reduce school districts’ 20-mill floor for tax levies and modify the formula for determining farmland’s current agricultural use value (CAUV). The change to CAUV language in the bill would increase the tax additur (a value that reflects the statewide effective property tax rate on agricultural land) to include a 10% floor. In practice, this change would serve to lower the current agricultural use value for land devoted exclusively to agricultural use. This bill has seen little movement recently and remains in committee. Part of the reason that this bill and others haven’t progressed very far through the legislative process is the existence of the Joint Committee on Property Taxation Review and Reform.
A provision in the Senate version of the last biennial state budget was to require CAUV be determined by averaging the last three years of Current Ag Use Values. (This provision was ultimately excluded from the final biennial budget.) The current method for determining CAUV requires an update or reappraisal every 3 years. Significant changes in the variables that are used to calculate CAUV can lead to big changes in values during this this three-year interval. These large increases or decreases are often unanticipated by taxpayers. The provision that was considered would have required the Current Ag Use Value be calculated taking the current year calculated value plus the two prior years’ calculated values (for each soil type) and averaging the three. This proposed method would likely result in smaller increases and decreases in a given 3-year cycle for CAUV calculations. This provision continues to be discussed and may yet see further legislative consideration.
Joint Committee on Property Taxation Review and Reform
The Joint Committee on Property Tax Review and Reform in Ohio was created in the state's operating budget in 2023 to review the state's property tax system and make recommendations to the General Assembly. The committee is considering a wide range of legislative and administrative changes that may change the property tax system in Ohio and is required to issue a report by the end of the 2024.
The Internal Revenue Service (IRS) has specific guidelines for determining whether a farming activity is considered a business or a hobby. This distinction is crucial because it affects how expenses and losses are treated for tax purposes. Farmers who engage in agricultural activities must understand these guidelines to ensure they comply with tax laws and maximize their deductions.
Defining Hobby Farms vs. Business Farms
The IRS considers several factors to determine if a farming operation is a for-profit business or merely a hobby. A farm classified as a hobby cannot deduct losses against other income, whereas a business farm can. The primary difference lies in the intent to make a profit.
The 3-out-of-5-Years Rule
One of the key benchmarks used by the IRS is the "3-out-of-5-years" rule. According to this rule, a farming activity is presumed to be for-profit if it has made a profit in at least three of the last five tax years. For horse breeding, training, showing, or racing, this period extends to two out of seven years. If the farm meets this criterion, the IRS assumes the activity is profit-oriented unless there is evidence to the contrary.
Factors Considered by the IRS
Even if a farm does not meet the 3-out-of-5-years rule, it can still be considered a business based on other factors. The IRS evaluates the following criteria to assess the profit motive:
- Manner of Operation: Is the farm run in a businesslike manner? This includes maintaining accurate books and records, having a separate bank account, and implementing strategies to improve profitability.
- Expertise: Does the taxpayer have expertise or consult with experts to make the farming operation profitable? This factor looks at the knowledge and experience of the farmer or their reliance on professional advice.
- Time and Effort: How much time and effort does the taxpayer put into the farming activity? Significant personal involvement can indicate a profit motive.
- Asset Appreciation: Does the value of the farming assets (such as land and equipment) increase over time? Appreciation can suggest a profit intent, even if the farm incurs losses.
- History of Income or Losses: What is the history of income and losses in the farming activity? Occasional profits or a trend towards profitability can support the profit motive.
- Financial Status: Does the taxpayer have substantial income from other sources? If the taxpayer relies on farming as their primary income, it is more likely to be seen as a business.
- Elements of Personal Pleasure: Does the taxpayer derive personal pleasure or recreation from the farming activity? While enjoyment does not automatically classify an activity as a hobby, it can be a contributing factor.
Tax Deductions and Hobby Farms
If the IRS deems a farm a hobby, the taxpayer can only deduct expenses up to the amount of income generated by the hobby. This means that hobby farms cannot use losses to offset other income. Conversely, a business farm can deduct all ordinary and necessary expenses related to the farming activity, even if they exceed income, potentially reducing overall taxable income.
Record Keeping and Documentation
Maintaining meticulous records is essential for farmers to substantiate their profit motive. This includes keeping receipts, invoices, and detailed logs of farming activities. Proper documentation helps demonstrate the businesslike operation of the farm and supports the claim of profitability.
Conclusion
Understanding how the IRS views hobby farms versus business farms is critical for farmers to manage their tax obligations effectively. The 3-out-of-5-years rule provides a clear benchmark, but other factors also play a significant role in determining the nature of the farming activity. By operating in a businesslike manner and keeping thorough records, farmers can maximize their tax deductions and ensure compliance with IRS regulations.

Income Tax Schools at The Ohio State University is excited to announce our dates and locations for our two-day, in-person tax schools, our 4-part webinar, introduction to tax preparation course, ethics webinar, and ag tax issues webinar.
Our two-day, in-person tax schools and 4-part webinar will cover the following topics:
- Trusts and Estates
- Related Party Issues
- Limited Liability Company Issues
- Business Entity Tax Issues
- IRS Issues
- Agricultural and Natural Resource Tax Issues
- Business Tax Issues
- Rental Activities
- Individual Tax Issues
- New and Expiring Legislation
- International Tax Issues
- Rulings and Cases
Our Agricultural Tax focused webinar will focus on:
- Business Entity Tax Issues: Split Interest Purchases, Partnership Issues
- Disaster Tax Issues: Casualty Gains, Losses, Deferral, Demolition, Land Clearing, Etc.
- Expensing and Depreciation, with a Deep Dive on Section 179
- Retirement Issues: Self-employment Tax/Social Security Issues,Review of Self-employment Tax Connection to Social Security, and Retirement Plan Options for Farmers.
- Lease v. Purchase, Capital Leases on the Farm
- Tax Planning for Lean Years
- Conservation Issues
- Selling and Trading Property
Make sure to mark your calendars! A list of dates and locations can be found below:
Registration is not yet open! We hope to launch registration for the fall tax schools in early July. You can keep up to date with all the latest tax school information by visiting: go.osu.edu/taxschools.
Registration for our summer course "An Overview of Small Businessses" is OPEN. You can find more information and register for the summer tax school by following: go.osu.edu/summertaxschool
If you have any questions, please do not hesitate to contact Barry Ward (ward.8@osu.edu) or Jeff Lewis (lewis.1459@osu.edu). We look forward to seeing you!
Tags: tax, Tax Schools, Ag Tax, Farm Tax, Introduction to Tax Preparation
Comments: 0

Summer Tax School 2024
Income Tax Schools at The Ohio State University Announces A Summer Tax School "Overview of Small Businesses”
Barry Ward & Jeff Lewis, OSU Income Tax Schools
An Overview of Small Businesses is the focus of the upcoming Summer Tax School Webinar featured by Income Tax Schools at The Ohio State University. Long-time instructor, John Lawrence, will be the primary instructor for this webinar.
This webinar is scheduled for July 31st and registration is now open. The registration page can be accessed at: go.osu.edu/summertaxschool
This Summer Tax School is designed to help tax professionals learn about tax issues related to:
- Selection and formation of a business entity
- Operation of the business entity
- Business entity transition and estate planning issues
- Relevant updates on federal tax law issues
By the end of this course, participants will have a thorough understanding of how to navigate the complex tax landscape, make informed decisions that optimize tax outcomes, and ensure the long-term success and sustainability of their businesses.
Webinar Agenda for July 31st:
9:00 Webinar room opens
9:20 Welcome and introductions
9:30 Session 1: Selection and Formation of the Business Entity: Tax Laws, Regulations, and Implications.
10:50 Break
11:00 Session 2: Business Entity Operation: Tax Planning for the Present.
Noon Lunch break
12:45 Session 3: Business Entity Transition and Estate Planning: Tax Planning for the Future.
1:45 Break
1:55 Session 4: Update on State and Federal Tax Law Rules and Regulations for Small Businesses.
2:50 Webinar concludes
Continuing Educations Credit Hours: 5
Continuing Legal Education Hours: 4
Registration cost is $200 and includes 5 hours of Continuing Education (CPE) and 4 hours of Continuing Legal Education (CLE). Registration information and the online registration portal can be found online at: go.osu.edu/summertaxschool
Participants may contact Barry Ward at 614-688-3959, ward.8@osu.edu or Jeff Lewis at 614-292-2433, lewis.1459@osu.edu for more information.
Tags: Small Business, tax, tax law, Tax Planning, Business, Business Tax
Comments: 0

With Memorial Day behind us, the unofficial start of summer is here, and we are back to bring you another edition of the Ag Law Harvest. In this Harvest we discuss OSHA’s proposed workplace heat hazard standards, DOL’s new H-2A Farmworker rule, an interesting income tax credit in Colorado, and a proposal to limit Ohio property tax increases.
OSHA Advances Proposed Rule to Mitigate Workplace Heat Hazards.
The U.S. Department of Labor's Occupational Safety and Health Administration (“OSHA”) announced that it is advancing a proposed rule to mitigate workplace heat hazards, following unanimous approval from an advisory committee. The rule aims to protect workers from heat-related illnesses and fatalities, particularly in agriculture. While OSHA works to finalize the proposed rule, OSHA “continues to direct significant existing outreach and enforcement resources to educate employers and workers and hold businesses accountable for violations of the Occupational Safety and Health Act’s general duty clause, 29 U.S.C. § 654(a)(1) and other applicable regulations.” Assistant Secretary for Occupational Safety and Health Doug Parker explained that as OSHA moves through the regulatory process, “OSHA will use all of its existing tools to hold employers responsible when they fail to protect workers from known hazards such as heat. . .” Since 2022, OSHA's National Emphasis Program has conducted nearly 5,000 inspections to proactively address heat-related hazards in workplaces with high heat exposure. The agency prioritizes inspections in agricultural industries employing temporary H-2A workers, who face unique vulnerabilities. Employers are reminded that they are legally required to protect workers from heat exposure by providing cool water, breaks, shade, and acclimatization periods for new or returning workers. Training for both workers and managers on heat illness prevention is also essential.
Department of Labor Finalizes and Publishes Rule Enhancing Protections for H-2A Farmworkers.
The U.S. Department of Labor (“DOL”) announced a final rule to strengthen protections for H-2A farmworkers. The new rule titled “Improving Protections for Workers in Temporary Agricultural Employment in the United States” includes the following provisions:
- Adding new protections for worker self-advocacy: The final rule enhances worker advocacy by expanding anti-retaliation protections and allowing self-organization and concerted activities. Workers can decline attending employer-led meetings that discourage union participation. The rule permits workers to consult legal and other key service providers and meet them in employer-furnished housing. Additionally, workers can invite guests, including labor organizations, to their employer-provided housing.
- Clarifying “for cause” termination: The final rule clarifies that a worker is not “terminated for cause” unless the worker is terminated for failure to comply with an employer’s policies or fails to adequately perform job duties in accordance with reasonable expectations based on criteria listed in the job offer. Additionally, the rule identifies five conditions that must be met in order to ensure that disciplinary and/or termination processes are justified and reasonable: These five conditions are: (1) the worker has been informed, in a language understood by the worker, of the policy, rule, or performance expectation; (2) compliance with the policy, rule, or performance expectation is within the worker’s control; (3) the policy, rule, or performance expectation is reasonable and applied consistently to H-2A workers and workers in corresponding employment; (4) the employer undertakes a fair and objective investigation into the job performance or misconduct; and (5) the employer corrects the worker’s performance or behavior using progressive discipline.
- Seat Belts: Any employer provided transportation must have seat belts if the vehicle was manufactured with seat belts. All passengers and the driver must be wearing seat belts before the vehicle can be driven.
- Ensuring timely wage changes for H-2A workers: The final rule establishes that the effective date of updated adverse effect wage rates is the date of publication in the Federal Register.
- Passport Withholding: The final rule prohibits an employer from holding or confiscating a worker’s passport, visa, or other immigration or government identification documents. An employer may, however, hold a worker’s passport for safekeeping only if: (1) the worker voluntarily requests that the employer keep the documents safe; (2) the employer returns the documents to the worker immediately upon their request; (3) the employer did not direct the worker to submit the request; and (4) the worker states, in writing, that the three conditions listed above have been met.
The final rule is effective on June 28, 2024. However, the DOL has made it clear that H-2A applications filed before August 28, 2024, will be subject to the current applicable federal regulations. Applications submitted on or after August 29, 2024, will be subject to the new rule. For more information, visit the DOL’s “H-2A Employer’s Guide to the Final Rule ‘Improving Protections for Workers in Temporary Agricultural Employment in the United States.’”
Colorado Establishes State Income Tax Credit for Qualified Agricultural Stewardship Practices.
Beginning in 2026 Colorado farmers and ranchers will be able to qualify for an income tax credit for actively engaging in conversation stewardship practices. The newly enacted legislation creates three different tiers of income tax credits.
- Tier 1: A state income tax credit equal to at least $5 and no more than $75 per acre of land covered by one qualified stewardship practice, up to a maximum of $150,000 per tax year.
- Tier 2: A state income tax credit equal to at least $10 and no more than $100 per acre of land covered by two qualified stewardship practices, up to a maximum of $200,000 per tax year.
- Tier 3: A state income tax credit equal to at least $15 and no more than $150 per acre of land covered by at least three qualified stewardship practices, up to a maximum of $300,000 per tax year.
However, only $3 million worth of tax credits can be issued in one tax year. Any claims for the tax credit beyond the $3 million dollars are placed on a waitlist in the order submitted and a certificate will be issued for use of the agricultural stewardship credit in the next income tax year. No more than $2 million in claims shall be placed on the waitlist in any given calendar year. Additionally, only one tax credit certificate may be issued per qualified taxpayer in a calendar year, and the taxpayer can only claim the credit for up to three income tax years.
Ohio House of Representatives Proposes Joint Resolution to Limit Property Tax Increases for Ohio Property Owners.
The Ohio House of Representatives have proposed to enact a new section in Article I of Ohio’s Constitution. Section 23 would limit property tax increases on Ohioans. Under the proposed change, the amount of real property taxes levied on a parcel of property cannot exceed the amount of tax levied on that parcel in the preceding year plus the rate of inflation or four percent, whichever is lower. There are some exceptions that allow a one-time increase in property tax liability in excess of the four percent limit. The exceptions include: (1) when a parcel is divided; (2) the expiration of a tax exemption, abatement, or credit that applied to the parcel in the preceding year; or (3) when a building is completed or significantly improved and is added to the tax list on the parcel. We will continue to closely monitor how the proposed resolution fares in committee and beyond. If the resolution passes both chambers of the Ohio Legislature, the proposed change would be voted on in the November 5, 2024, election.
Tags: OSHA, Department of Labor, H-2A, Income Tax, Colorado, Ohio, property tax
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The Ohio General Assembly is back in Columbus after the March 19th primary election, and committee schedules are already filling up. Given the increased activity in recent weeks, we thought it was a good time to examine what has happened legislatively this year up until this point.
H.B. 64—Eminent Domain. This bill was first introduced by Representatives Kick (R-Loudonville) and Creech (R-West Alexandria) in February of 2023. The bill’s purpose is to make it more difficult for governmental agencies or private entities to take private property through eminent domain. On February 6, 2024, the bill was updated with a Substitute House Bill 64 in the House Civil Justice Committee.
The previous version of the bill excluded recreational trails from the definition of “public use,” meaning that property could not be taken by a government agency for recreational trails. The current version of the bill narrows this language, allowing for a taking for the purpose of creating recreational trails, but not in cases where the property is not adjacent to a public road and where the property’s primary use will be for a recreational trail.
Another substantial change between the versions involves compensation offers from the government entity to the landowner. In the original version of the bill, a government entity would not have been allowed to reduce an offer made to purchase property before proceedings commenced if the reduction was based on hard-to-discover issues with the property. The current version would exclude this provision, restoring an agency’s authority to reduce offers.
Substitute House Bill 64 would also make changes to compensation and awards landowners could receive if the issue goes to court.
H.B. 197—Solar Development. Sponsored by Representatives Hoops (R-Napoleon) and Ray (R-Wadsworth), H.B. 197 would establish a the community solar pilot program and the solar development program. Under the language of the bill, a “community solar facility” is defined as a single facility with at least three subscribers and a nameplate capacity of 10 megawatts or less, or 20 megawatts or less if on a distressed site. Furthermore, the bill would require The Public Utilities Commission of Ohio (PUCO) to establish a Community Solar Pilot Program of 250 megawatts on sites in the Appalachian region of the state. The bill would also amend the state competitive retail electric service policy to encourage community solar facilities in the state and allow subscribers to community solar facilities to receive monthly electric bill offsets.
H.B. 324—Motor Fuel. Introduced by Representatives McClain (R-Upper Sandusky) and Klopfenstein (R-Haviland) in November of 2023, H.B. 324 passed the House on February 7, 2024 and was referred to the Senate Ways and Means Committee on February 27.
If passed, the bill would authorize a temporary, nonrefundable income or CAT tax credit of 5 cents per gallon for retail dealers who sell high-ethanol blend motor fuel containing between 15-85% ethanol. The tax credit would be limited to five years or to a total of $10 million, whichever occurs first.
H.B. 327—Employee Verification. H.B. 327, introduced by Representatives Wiggam (R-Wayne County), and Swearingen (R-Huron), had its first committee hearing in House Commerce & Labor on February 13, 2024. The bill would require political subdivisions, private employers employing 75 individuals within the state of Ohio, and nonresidential construction contractors to verify each new employee’s work eligibility through the federal E-verify program. E-Verify is an online program that helps employers verify employees’ eligibility for employment. If the bill were to pass, the employer would be required to keep a record of the verification for the duration of the employee’s employment, or three years, whichever is longer. During testimony on the bill, Representatives Wiggam and Swearingen indicated an interest in possibly lowering the employee threshold, citing Florida’s 25 employee threshold.
H.B. 347—Farming Equipment Taxes. This bill was introduced by Representative Don Jones (R-Freeport) and referred to the House Ways and Means Committee in early December of 2023. Since then, the bill has been heard in committee twice, once in January, and once in February, both times without testimony. The bill would change the way farmers claim a tax exemption on certain purchases.
Currently, when an Ohioan engaged in farming, agriculture, horticulture, or floriculture is buying a product for “agricultural use,” they must provide the seller with an exemption certificate. This certificate comes from the Ohio Department of Taxation and relieves the seller of the obligation to collect the sales tax on behalf of the state. However, the Department of Taxation can later determine that the purchase does not qualify for exemption, and then the farmer would be expected to pay the tax.
H.B. 347 would slightly alter this current way of doing things when it comes to the purchase of certain vehicles and trailers. Under the bill, the purchaser could receive an agricultural use exemption for taxes on these vehicles if the purchaser shows the seller copies of the purchaser’s Schedule F—the federal income tax profit of loss from farming form—for three most recent preceding years. Alternatively, a farmer could obtain a certificate from the Department of Taxation verifying that they have filed a Schedule F for three years in lieu of providing the forms directly to the seller. Notably, the bill states that “no other documentation or explanation shall be required by the vendor or the tax commissioner” to prove that the purchase qualifies for the agricultural use exemption.
The following vehicles and trailers would be included under the bill:
- Trailers, excluding watercraft trailers;
- Utility vehicles, (vehicles with a bed, principally for the purpose of transporting material or cargo in connection with construction, agricultural, forestry, grounds maintenance, land and garden, materials handling, or similar activities);
- All-purpose vehicles, (vehicles designed primarily for cross-country travel on land and water, or on multiple types of terrain, but excluding golf carts);
- Compact tractors (garden tractors, small utility tractors, and riding mowers).
H.B. 364—Seed Labeling; Noxious Weeds. Sponsored by Representatives Dobos (R-Columbus), and Klopfenstein (R-Haviland), H.B. 364 had its first hearing in the House Agriculture Committee on February 6, 2024. Specifically, the bill would allow the Ohio Prairie Association and other noncommercial entities sharing seeds to distribute milkweed seeds non-commercially to i members, with the intent of promoting habitats for pollinators like monarch butterflies.
The bill would legally define “non-commercial seed sharing” as the distribution or transfer of ownership of seeds with no compensation or remuneration. Also included in the definition are a list of situations that are not considered “non-commercial seed sharing,” including when:
- The seeds are given as compensation of work or services rendered;
- The seeds are collected outside of Ohio;
- The seeds are patented, treated, or contain noxious weed species or invasive plants.
H.B. 364 also includes a definition of “seed library,” which it defines as a non-profit, governmental, or cooperative organization or association to which both of the following apply:
- It is established for the purpose of facilitating the donation, exchange, preservation, and dissemination of seeds among the seed library’s members or the general public.
- The use, exchange, transfer, or possession of seeds acquired by or from the non-profit governmental, or cooperative organization or association are obtained free of charge.
The bill would further exempt non-commercial seed sharers and seed libraries from labeling, advertising, handling, and sales restrictions under Ohio law.
To further the goal of promoting pollinators and habitats, H.B. 364 would make changes to the requirements for maintaining toll roads, railroads, or electric railways. Current law requires managers of such thoroughfares to destroy a number of noxious weeds along the roadway or in right of ways. The bill would no longer require the destruction of Russian thistle, Canadian thistle, common thistle, wild lettuce, wild mustard, wild parsnip, ragweed, milkweed, or ironweed.
H.B. 447—Property Tax. Introduced on March 12, 2024 by Representative Loychik (R-Cortland), H.B. 447 was referred to the House Ways & Means Committee on April 2, 2024. The bill would modify and expand property tax homestead exemptions, gradually reduce school districts’ 20-mill floor for tax levies and modify the formula for determining farmland’s current agricultural use value (CAUV). The change to CAUV would involve the calculation of the overall capitalization rate for agricultural land. Current law does not establish a minimum rate, but the bill would do so by stating that overall capitalization rate plus additur shall not be less than 10 percent. Since a higher capitalization rate results in a lower CAUV value and because the current capitalization rate is around 8%, the change would likely lower CAUV values.
S.B. 156—Scenic Rivers. This bill, sponsored by Senators Reineke (R-Tiffin) and Hackett (R-London) passed the Ohio Senate on January 24, 2024, and was referred in the House to the Energy and Natural Resources Committee on February 6, 2024. The bill would transfer the Wild, Scenic, and Recreational Rivers Program from the Division of Parks and Watercraft to the Division of Natural Areas and Preserves (DNAP) in ODNR. The bill would narrow the scope DNAP’s authority to watercourses designated as wild, scenic, and recreational rivers. Currently, the law is written so that the regulatory agency has authority over areas. “Areas” encompass not just the water, but also the land surrounding rivers. On the other hand, “watercourses” are defined as “substantially natural channel[s] that [are] at least five miles in length with recognized banks and a bottom in which the flow or water occurs.” Thus, agency oversight would be diminished from the river and its surrounding area to just confines of the river itself.
The bill also clarifies that a watercourse designation does not affect private property rights adjacent to a designated river.
Finally, the bill would require DNAP to adopt rules for the use, visitation, and protection of scenic river lands and provide for the establishment of facilities and improvements that are necessary for their visitation, use, restoration, and protection, but do not impair their natural character.
S.B. 226—Agricultural Land. S.B. 226 was introduced by Senator Terry Johnson (R-McDermott) in late February and referred to the Veterans & Public Safety Committee on February 27, 2024. The bill would create the Ohio Property Protection Act, which would include protection of:
- Agricultural land, defined as “land suitable for use in agriculture,” including the water on the land, airspace above the land, and natural products and products from the land;
- Any land located within a twenty-five-mile radius of any installation under the jurisdiction of the United States Armed Forces;
- Any land located within a twenty-five radius of a critical infrastructure facility.
To protect property in the above categories, the bill would make it illegal for the following people and entities to acquire or purchase such property:
- Those persons and foreign adversaries listed on a registry compiled by the Ohio Secretary of State;
- A government of a foreign adversary;
- An individual who is a citizen of a foreign adversary;
- A business that is headquartered in a foreign adversary;
- A business that is directly or indirectly owned or controlled by one or more of the above persons and entities; and
- An agent, fiduciary, or trustee of the above persons and entities.
Tags: Ohio legislation, Ohio legislature, eminent domain, ethanol, solar, sales tax, foreign land ownership, cauv, property tax, scenic rivers
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