Corporate Limitations on Prepaid Inputs

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1998-01-16
Authors
Harl, Neil
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Abstract

For more than four decades the Internal Revenue Service has tried to limit the amount of fertilizer, chemicals, feed, seed and other inputs that farmers could pay for and deduct in the year before the inputs are actually used or consumed. Early litigation involved mostly tax shelter operations but more recent cases challenged deductions claimed by bona fide farmers.

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