[GNC] Account for contracted grain sales?

[Michael or Penny Novack]

On 11/4/2019 11:18 PM, John Ralls wrote:

>> One thing I have done for years is enter into a deferred payment
>> contract with the cooperative that buys my grain.  In general the grain
>> is sold as of a given date with payment at some future specified date.


>>    As I see it, I have a
>> sort of promissory note that doesn't pay interest, if that makes any
>> sense, that in early January will be paid by the cooperative.  It is
>> future income but I don't want it listed as such until next year.

I think that is correct. You have traded an asset for an asset. But 
unfortunately I am not up on the tax rules for farming << this land was 
last commercially farmed circa 1930; Step by Step farm is wildlife 
habitat >> You'll have to look up WHEN the gov't considers it to become 
income. Future sales, deferred payment contracts, etc. are common in 
farming so there should be definite guidelines how you should treat it.

Anyone here with accounting for farming experience?

Michael