Crop insurance can muddy tax waters
date:Oct 24, 2012
er words, if you have lost income from crop yields but have recovered that income from crop insurance, you won't have to pay taxes on that income even though it all may come in this calendar year, vs. grain sales income that could come months or years down the road.

Generally, this exception applies when crops cannot be planted or are damaged or destroyed by a natural disaster such as a drought or flood. To qualify for the exception, a farmer must use the cash method for accounting and must sho
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