Marie Posted October 6, 2023 Report Share Posted October 6, 2023 Where do I find the information regarding this? Looked in the Farm pub, but didn't find. Quote Link to comment Share on other sites More sharing options...
Marie Posted October 6, 2023 Author Report Share Posted October 6, 2023 Farmers buy trucks or pickups with grain or calves sold. Proceeds go directly to the dealer. I know I've read different articles on this, but, of course, can't find them now for reference. Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 6, 2023 Report Share Posted October 6, 2023 Iowa State University Center for Agricultural Law and Taxation is an excellent Resource: https://www.calt.iastate.edu/ 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 6, 2023 Report Share Posted October 6, 2023 3 hours ago, Marie said: Farmers buy trucks or pickups with grain or calves sold. Proceeds go directly to the dealer. FMV of product is recorded as sales. There must have been a negotiated price before the deal was closed with the buyer. That also becomes basis of vehicle. I have not seen this before, is the buyer of of calves/grain independent from vehicle dealer? 2 Quote Link to comment Share on other sites More sharing options...
Marie Posted October 6, 2023 Author Report Share Posted October 6, 2023 it happens here often. It saves on sales tax Farmer sells calves or grain and the money goes direct to the vehicle dealer in exchange for a farm truck. There's paper work for dept of revenue, but it works out there is no sales tax 1 Quote Link to comment Share on other sites More sharing options...
Marie Posted October 6, 2023 Author Report Share Posted October 6, 2023 I looked on the IOwa state farm website but could not find anything with the search button. Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 6, 2023 Report Share Posted October 6, 2023 Sounds like a variation of a classic barter transaction. Generally, barter transactions are subject to all taxes including sales tax. Does Missouri specifically exclude this type of transaction from sales tax? 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 7, 2023 Report Share Posted October 7, 2023 4 hours ago, cbslee said: barter transaction That was my first thought, but there are three parties involved. I have never head of anything like it. So if farmer wants to buy a $50,000 pickup from Fast Freddy's auto lot, he delivers grain with the exact same value to Riverside Grain Grabber's Inc. RGG then forwards the money to Fast Freddy. Seems odd Fast Freddy has no obligation to report for sales tax. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 7, 2023 Report Share Posted October 7, 2023 6 hours ago, Marie said: Farmer sells calves or grain and the money goes direct to the vehicle dealer Report sales on Schedule F and depreciate same amount as cost of vehicle. 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.