S.D. Admin. R. 64:80:04:04
S.D. Admin. R. 64:80:04:04
General Authority: SDCL 10-41-9.
Law Implemented: SDCL 10-40-26.
Example:
Mr. Farmer died on July 30, 1989. On the date of his death, he had a 50 percent interest in 500 acres of an agricultural product planted on his land. He was entitled to $150 for this crop in federal disaster payments at the time of his death. The local elevator was paying $1.00 per bushel for the agricultural product as of July 30, 1989. The estimated yield was 25 bushels per acre. The unpaid cost of producing the product was $200. Using the formula, the taxable value of decedent's interest in the agricultural product is calculated as follows:
{[(25 x 500 x $1) - $200] + $150} x 50% = $6225.
25 $12,500 $12,300 $12,450 x500 - 200 + 150 x .50 x $1 $12,300 $12,450 $ 6,225 $12,500
25
$12,500
$12,300
$12,450
x500
- 200
+ 150
x .50
x $1
$12,300
$12,450
$ 6,225
$12,500