What qualifies as a "farm" for tax deductables...?

[patandchickens]

The IRS thing is about whether it is being run as a viable business.

Anything else tends to be at the state level, and quite definitely varies across the country. Typically you need to be zoned agricultural and gross X amount per year from activities officially defined as farm use, some of which is counterintuitive (I do not remember any exact examples from the states anymore, but up here, training racehorses is farm use but training western pleasure horses is not; running a pay-to-fish pond is farm use but running a boarding stable is not, go figure)

So you really need to find out what rules apply to your own locality, not to someone else's. Your municipal office would be a good first place to ask, they can quite likely direct you to the correct information or at least the correct place to look

Good luck, have fun,

Pat

 

[Wolf-Kim]

I was just curious is all.

Honestly it sounds like a huge headache and a pain in the neck to have to deal with. While saving money is nice, try to keep things simple around here. LOL

 

[FarmerChick]

Unless you want a "real farm business" to make a real income and live off it, don't go into it without some thought.

I did and wow, it is a headache. I since pulled out of the "farming for income on paper" and just make tons of money now without having to report it....of course I can't report all my deductions either but hey, money is good!!

I hear you!

 

[xpc]

As said before there are benefits for a small farm, working or not. Kentucky is 5 acres, Indiana is 10 acre. The IRS is and by it self not the issue when you apply for farming preservation by the United States government, it is a separate identity - the more you own and the less you do the more you make.

In Wisconsin a 75 acre prairie will pay you a few thousand a year "not to plant" I have a good friend in WI that does it and a brother in Indiana with 10 acres.

Call your local co-op or university ag extension and find out for sure, all we can do is guess.

 

[miss_thenorth]

I have not read all the posts, but ironically we were just talking about this last night. Our taxes on this property are outrageous to say the least. Just a hair under three acres, and almost $5000 a year--with no services. We have to bring our own garbage, have no streetlights, no sewers, not paved roads, etc etc. We called about our taxes, and they told us to qualify as a farm, we need to make $7000 a year. That would cut our taxes in half, we would be able to right off a percentage of our utilities, our truck etc.

So, we are going to look into it a little deeper. My uncle was here last night, and he is a retired pig farmer. He thinks, but is not sure, that we need to just gross $7000/year. Ths does not include how much money was used to make this gross. For example--say we get a couple of beef cows, raise them for a few months and then sell them. The money we make from selling them is our gross. It does not include or take into consideration how much we spent to buy them, or feed them. Just sell them. That is what my uncle thought last night. We will look into it.

Our theory is, even if we break even on the money we put out, to the money we get back, --separate from that, we will have gotten a property tax break, not to moention a percentage of our utilities etc are written off.

It is probably a bit different in Canada than it is in the states, but probably there are similarities. But this is something we are going to look into further.

I already have a client for my meat rabbits, which should gross approx $3000/year. They will be live sales, so no government involved inthat. Say I sell meat chickens live also, and ducks. $7000 might be obtainable even without beef cattle.

 

[xpc]

Wow that is a lot of money, I have not found anywhere in the states that do less than 5 acres - if I were you I'd exaggerate a bit and stretch your property lines just a tad.to make the requirements, though be prepared to pay it all back if they finger you.

Our county tax rate is 0.70 per thousand, or $700 for a $100,000 property. The city is about 1.2% or $1200 but includes all the goodies.

Good luck in your rabid rabbit adventure, just remember millionaires and politicians didn't get to where they are by being totally honest.