St. Paul, MN:
The Minnesota Department of Agriculture’s
(MDA) Rural Finance Authority reminds beginning farmers and asset owners
to apply by October 1, 2019 for the tax credit for the sale or lease of
land, equipment, machinery, and livestock.
To
qualify, the applicant must be a Minnesota resident with the desire to
start farming or who began farming within the past ten years, provide
projected earnings
statements, have a net worth less than $836,000, and enroll in or have
completed an approved financial management program. The farmer cannot be
directly related to the person from whom he or she is buying or renting
assets. The tax credit for the sale or lease
of assets can then be applied to the Minnesota income taxes of the owner
of the farm land or agricultural assets.
Three levels of credits are available:
Five percent of the lesser of the sale price or fair market value of the agricultural asset up to a maximum of $32,000
10 percent of the gross rental income of each of the first, second and third years of a rental agreement, up to a maximum of $7,000 per year
15 percent of the cash equivalent of the gross rental income in each of the first, second or third year of a share rent agreement, up to a maximum of $10,000 per year
Posted: August 27, 2019