Tax Savings Through Gifts of Grain and Livestock

November 2, 2009

Nebraska farmers and ranchers can save significant taxes by contributing commodities such as corn or cattle to the Valley County Health System Foundation.

When an agricultural producer transfers legal ownership of a commodity to a charitable organization before the commodity is sold, the producer does not have taxable income from the sale and thus minimizes taxes. Depending on the specific circumstances, the producer may realize savings on federal and state income tax and self-employment tax. The producer can still deduct the costs of production.

The Valley County Health System Foundation is an affiliated fund of the Nebraska Community Foundation which processes these gifts on our behalf. Since specific procedures must be followed to obtain the desired tax treatment of a gift of grain or livestock, producers should notify the Nebraska Community Foundation before making a gift of commodities.

Producers should consult with their accountant or tax advisor to determine whether a contribution of commodities is appropriate to their tax situation.

For assistance with a gift of commodities contact Becky Ries at (308) 728-3011.