Donating crops to a charity is a win/win

Dear Editor,

Farming in the Grant community has been the best decision I have ever made.  I have always felt a responsibility to show my appreciation for that success. What better way to do that than to leverage the results of that investment to benefit the Perkins County community in its effort to build a new nursing home?

Donating cash to a charity has limits on the amount deductible.

As pointed out by Marc Lovell of the University of Illinois Tax School, donating a crop to a charity has no limits and a number of tax advantages.

 • The value of the donated crops is not included on Schedule F as income;

 • The expenses associated with the production of the donated crops are deductible on Schedule F;

 • There are no federal or state income taxes paid on the value of the donated crops;

• There is no self-employment tax paid on the value of the donated crops;

 • Yield records are not affected by the donation

The donated crops are not income, therefore they are not taxed.  For me, this is a win/win situation.  

Ownership of a crop amount (measured in bushels, etc.) that has not already been sold may be transferred to a charity.  The charity sells “their” crop and receives cash.

Sincerely, 

Lee Shaw

Longmont, Colo.