Being honest
- Thread starter WestTNguy
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WestTNguy said:
And labor. In addition it requires a lot of water.
farmerjan said:
Jan, I have read a Dave Ramsey's book. Unfortunately, my family did not come from much at all. We were very poor. I've had to teach myself everything, and fortunately get to pick up tidbits from folks at work who are much better off than I am. I believe Dave Ramsey is very good for most people IN GENERAL. Everyone has their own personal financial situations. Would he tell me to pay off my student loan debt? Yes he probably would. But for me personally, my employer matches my retirement contributions (free money). I also keep a large part of my savings in Index Funds, since historically the market has returned an average of 7%. The rest I keep in a "high interest" savings account for stuff like emergencies. I plan to diversify some with real estate once I get married (that's a whole other story) and maybe some with the cows. If I can have a tractor I can depreciate each year, that holds its value...I can sell it later and recover some cash. I hope. I'm not an expert at this, but I feel like this is the best method for me.
The stock market could tank any day, and I lose a lot. It has always come back up. Having some diversification is your only insurance. I figure that people still need to eat, so this is where the cows (hopefully tax breaks) come in.
WestTNguy said:
Prices always go up and down. Weed is like oil. You see the ebb and flow. Right now we are on a downward trend after coming off a really high market. We tend to see the same ups and downs every year. But, it's always best in this market to be niche. I produce the heavy stuff. Medical always has a market but recreational is by far more profitable.
farmerjan
Well-known member
The hemp that most states are allowing to be grown, is the industrial hemp, that has no THC's (?), not the recreational, get high kind. Yes there are places that they can grow that, but in Va they have made growing hemp legal also, but you sure won't get anywhere by smoking it. It is for all sorts of industrial use, and there is the strains that they use for CBD oil and such. Still no hallucinating properties to it. There are quite a few that have signed up to grow it.
farmerjan
Well-known member
You are young enough to see a bad crash and then regain if things get better. It took me about 7-8 years to get back what I had lost. And at my age, I am not willing to have a big chunk of it disappear and not have the time to make it back. I do keep about 20-30 % in higher risk and have done okay, but not as good as they did back years ago. And I watch it pretty close. We only have a certain number of things we can invest in, offered through the company with the money I put into the retirement.
My employer also matches; up to 5% . Yep free money and I take full advantage of that. But if you are putting alot more into retirement that is not matched, then I think you still might be a bit better off, and SAFER, to get your debt paid down. Since I don't know your situation, I really can't say.... just an observation. I am very concerned that this market is going to make a pretty big correction. I will not lose the bulk of my money this time.
My "retirement" is/was going to be my cows. They have been as big a roller coastal ride as the stock market..... with the exception that I can always eat them and the cows will reproduce themselves ( for the most part).... so not a complete loss. Lost money on the market is lost.
Don't know your political affiliation, and not my place to judge.... but if half of the talk of all the far left socialist Democrats is anything near true....and they get into power..... you are going to want to have your money anywhere but where they can tax you at the outrageous rates they are proposing. And please don't be foolish enough to think that they will only tax the 1% of the 1% wealthiest. Those are the guys who are alot smarter than me, and they will be sheltered in every way they can be, they will move themselves and their money out of this country, and then it will start hitting the "well-off" to pay for all this stuff.... I just hope that it never gets to where they can just come in and take your land..... But if they tax it to the point where you can't pay it, (think Civil War -carpetbaggers etc.) it is just another form of "legal stealing"... Somehow, I am sure they won't be forgiving your debt though... because as long as you are struggling to pay it they are getting some money.
My employer also matches; up to 5% . Yep free money and I take full advantage of that. But if you are putting alot more into retirement that is not matched, then I think you still might be a bit better off, and SAFER, to get your debt paid down. Since I don't know your situation, I really can't say.... just an observation. I am very concerned that this market is going to make a pretty big correction. I will not lose the bulk of my money this time.
My "retirement" is/was going to be my cows. They have been as big a roller coastal ride as the stock market..... with the exception that I can always eat them and the cows will reproduce themselves ( for the most part).... so not a complete loss. Lost money on the market is lost.
Don't know your political affiliation, and not my place to judge.... but if half of the talk of all the far left socialist Democrats is anything near true....and they get into power..... you are going to want to have your money anywhere but where they can tax you at the outrageous rates they are proposing. And please don't be foolish enough to think that they will only tax the 1% of the 1% wealthiest. Those are the guys who are alot smarter than me, and they will be sheltered in every way they can be, they will move themselves and their money out of this country, and then it will start hitting the "well-off" to pay for all this stuff.... I just hope that it never gets to where they can just come in and take your land..... But if they tax it to the point where you can't pay it, (think Civil War -carpetbaggers etc.) it is just another form of "legal stealing"... Somehow, I am sure they won't be forgiving your debt though... because as long as you are struggling to pay it they are getting some money.
Jeanne - Simme Valley
Well-known member
In NY, you have to show a GROSS income of $10,000/yr from farming to be farm exempt. Not sure where that falls into play with IRS taxes.
Nesikep
Well-known member
Around here, if you sell something for more than its depreciated value, that's taxable income.. We don't have some of our equipment listed in our taxes because we bought it cheap enough we'll never sell it for less, it is probably appreciating in valueWestTNguy said:
Lots of stuff to take into consideration here. I'd have to double check, but I think in my state you have to show a profit 3 of 5 year. And I believe that amount is only $1000. I'm 95% sure I read that, but I'll have to double check.
Then again, a coworker depreciates rental property and he said he shows a loss every single year. I know it's not farming, but either way.
All very helpful. I agree with what you all are saying.
I guess the years I need to show a profit, I just don't write anything off and take a hit like I've been doing for 8 years.
Then again, a coworker depreciates rental property and he said he shows a loss every single year. I know it's not farming, but either way.
All very helpful. I agree with what you all are saying.
I guess the years I need to show a profit, I just don't write anything off and take a hit like I've been doing for 8 years.
Nesikep said:
From what I've read in the federal tax guide, you can either depreciate something (truck for example) or you can write off expenses like gas, mileage etc. You have to pick one or the other methods and stick with it. If you choose to write off expenses....what does that mean when you go to sell?
Nesikep
Well-known member
I think that choice would come to if you chose a flat rate for charging mileage, which if the vehicle is mostly used for non-farm use (like going to your day job) would be appropriate, in which case you can't deduct the expenses of owning it.. There's probably a "reasonable rate" listed somewhere for what you can charge...
If the vehicle is mostly used for farm business, then parts, fuel, insurance, and depreciation ought to apply to expensable items.. I know our tax codes are a bit different up here, but what you're suggesting sounds ridiculous.
The tax man has a very difficult time telling if that CR 23990 seal you bought is for your tractor or your truck BTW!
If the vehicle is mostly used for farm business, then parts, fuel, insurance, and depreciation ought to apply to expensable items.. I know our tax codes are a bit different up here, but what you're suggesting sounds ridiculous.
The tax man has a very difficult time telling if that CR 23990 seal you bought is for your tractor or your truck BTW!
Jeanne - Simme Valley
Well-known member
When you buy a farm item, you choose on each item whether you are going to expense the whole cost that year, or part of it and depreciate the rest, or depreciate each year based on full cost. You do that with ASSETS, not costs like fuel, fertilizer, etc.
If you bought something for $10,000 and you depreciated for a few years then sell it, you take the orig cost, less the depreciated amount, then figure out loss or profit.
$10,000 - $4,000 depreciation = $6,000.
Sold for $7,000, you have to claim a $1000 income.
If you sold it for $4,000, then you would have a $2000 expense/loss.
If you bought something for $10,000 and you depreciated for a few years then sell it, you take the orig cost, less the depreciated amount, then figure out loss or profit.
$10,000 - $4,000 depreciation = $6,000.
Sold for $7,000, you have to claim a $1000 income.
If you sold it for $4,000, then you would have a $2000 expense/loss.
Nesikep said:
This is why I'm asking. Paying $60k a year in taxes at my full-time job is also ridiculous. I've always heard that Warren Buffet pays less in taxes than his secretary....there is a way, just need to figure it out.
Just playing devils advocate here....I can't see why anyone would get into cattle other than tax reasons. It truly appears there is no money in it, other than the few folks saying they do it for tax purposes.
I guess the other option is to buy a laundromat and write stuff off like the Mexican cartel does :lol: Although, that method seems much easier than what I'm going for here.
Nesikep said:
I just looked this up, and unless it's changed recently, that only applies to equipment that was sold within 5 years (7 for certain things) from the date of purchase.
I'm not sure if that applies to equipment that you could sell for more than the purchase price though (after that 5 year period).
