O/T Need Your Advice

I really hate being dumb as I am and not understanding something, so I'll just spill my guts and ask. Maybe some of you can enlighten me.

As you all know, the wife and I need a diversion and we are building towards a small farm and the equipment it takes to run it. Eventually, we want to cut back on this corporation and become more self-sufficient on a little farm because we are both getting up in years and we wanna just step back and slow down.

So, in pursuit of this idea and because it is so darned cheap to acquire and run, I've been buying a lot of 30-year-old equipment, paintin', fixin' it all up and parking it out in a field until the day we can start this little endeavour.

Okay, now we run into a small problem. To date we haven't been able to locate a decent operational farm to purchase and therefore cannot file as a farming entity on our taxes.

I get a call yesterday from the county assessors' office telling me that I have to come in and sign a personal property form and to bring my depression schedule.

Since we are not actively farming and cannot claim it as a farming related expense, I have a feeling I'm gonna get dinged and dinged hard on all this old junk as being considered taxable personal property.

Is this how this is gonna play out? I'm startin' to get a headache. :>(

Thanks,

Allan

I bought a couple of items from the local machinery dealer and they filled out that sales-tax deferment form and didn’t charge me any sales tax.

The gal at the courthouse told me that sometimes it can take up to two years for them to get all that info in the system.

So, if that's the case, I've got to make up my mind if I wanna pay the sales tax and claim it as personal property or put it on a depression schedule.

Dunno, gotta go talk to 'em.

Allan

Just got the same word from a fella here too. Just hope I can pull it off as a "hobby" 'cause I'm getting quite a sizeable field full of my trinkets. :>(

I swear this state is got to be the world's worst when it comes to taxes; if you breath air, ye shall be taxed.

They taxed me on the damned proceeds that went directly to the creditors, when they took it all away from me the first time around. Then, they tax me when I'm tryin' to get it all back because now I'm considered "healthy" again. Geeze!

Wyoming and South Dakota are lookin' better and better every day.

Or how's about this? Drunks, bums and hobos don't pay these outrageous taxes; maybe that's a plan. :>)

Thanks Pard,

Allan

As I understand it there is a power company in Florida that has more tax credits than they can use. They are selling tax credits to anyone who wants to buy them. The deal is that you will share your tax savings with the Florida power company to the tune of 50% and in effect become part owner in the company. You can apply these tax credits to back taxes up to three years ago or 2002.

A friend just did it with his 2002 return. He received his check, sent 50% of it to the power company, 5% to the tax attorney and pocketed the remaining 45%. He is now doing the same with his 2003 return and plans to repeat the process with his 2004 return.

Has anyone else heard of this?

Well that makes more sense than the "Have another farm sale" advice I was just given here locally. :>)

Allan

I think that if you call it a hobby you cant take any deductions on the stuff.At least that is the way I understood it when I was trying to farm. Give yourself a name like Allans Enterprise or whatever. Better yet,talk to a tax attorney or accountant.

steveormary

I think the minimum acreage you have to have to qualify for a farm is 20 acres.

steveormary