On the Federal level,you are allowed to deduct expenses/losses up to the amount of the filers total earned income. This can include income from farm related sales of crops and livestock, custom work done for others, your own off farm job as well as your Wifes off farm job if filing status is married filing jointly. With continued losses I would guess that the odds of an audit go up so record keeping is essential. It is perfectly legitimate to have losses year after year while aquiring machinery and building up a farm and making other improvements. The ''Hobby Farm'' determination is rather dated as it was orignally intended to prevent the idle rich from offsetting their trust fund royalties on normal maintenance of estates and pleasure horse farms. Schedule F losses actually lower your adjusted gross income which lowers your total tax bill much more than simple deduction. My home state, Louisiana, taxes the citizens based on the filers federal adjusted gross income so the farm losses help lower state taxes in that manner. Most strip mall tax preparing businesses will not be very up to date on schedule ''F'' or very interested in getting the maximum deductions available to part time farmers because there may be an audit and they do not make money attending audits for free, therefore they tell people they cannot take deduductions they are due. Most WORKING, TAX PAYING PEOPLE are leery of the IRS to the point that they fail to get all the deductions due them and consequently pay more tax than they owe,year after year, falsely believing that the beast can be appeased. It really comes down to whom you believe is the most qualified to spend your money, you or the federal goverment
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
