Another Tax Question

[usernametaken]

If you participate in some of the cost-share programs offered by a state or EQUP at Conservation Service, is the government part of the cost-share considered income at the end of the year ?

Thanks,
Melissa

 

[dun]

Yes, I don;t recall what it is but you get a special tax fomr from the gov that covers it

 

[Nowland Farms]

Yes, the cost sharing payments you get is considered income.

It will be considered as income just as if you sell hay, cows or anything else off the farm.

 

[usernametaken]

Thanks Dun and Nowland Farms.

I had a feeling that would be the case.

 

[CSM]

You will receive a 1099 Miscellaneous Income if you receive over $600. Record it as income on your schedule F.

CSM

 

[dun]

You will receive a 1099 Miscellaneous Income if you receive over $600. Record it as income on your schedule F.

CSM

That's it, that's the from I couldn;t think of

 

[usernametaken]

You will receive a 1099 Miscellaneous Income if you receive over $600. Record it as income on your schedule F.

CSM

Thanks CSM.

 

[Jogeephus]

Just wondering if you thought it was worth it? Taking the cost share money that is, rather than just biting the bullet and doing it yourself. Seems to me, requirements of some programs are such that by the time you do all the things they require, then pay taxes on the money they give you, it might be just as well to do it yourself and claim a deduction - sometimes. I guess it depends on the program and what you are doing. But what do you think?

 

[dun]

The programs we use all pay labor costs to do the job. The small bite of taxes is pretty insignificant. It's not much different then working at a regular job but you will be the one to have the long term benefit of appreciation. The stuff we do is that which we would do anyway, this way we get something for the efforts. The only programs we had any real specifications for was fencing and it turns out that now even though we're fencing for things that aren;t in a program we still build it the same way. Most of the fences will last long after I'm moldering in the ground. Wish the earlier fencing had been done this way so I wouldn;t have to rebuild the junk that was already done before.

 

[Jogeephus]

I use the gov't agencies a lot for advice but have only once applied for any help - this was for a haybarn. Filled out a bunch of forms and carried the paperwork to their office on Friday which was the deadline and was told they had called it a week and were playing golf. That left a bad taste in my mouth and I haven't applied for anything since.

What type cattle improvements will they cost share on at this time? Or are the programs dependent on your region?

 

[dun]

What type cattle improvements will they cost share on at this time? Or are the programs dependent on your region?

Dependent on the area. Right now around here the biggies are fencing livestock out of timber, water systems, MIG fencing and improvements, forestation of natural water courses (buffer zones), and too a lesser extent timber stand improvments.
For dairys the real push is for manure handling improvements.

 

[Jogeephus]

Thanks Dun. I imagine they will be pushing more and more water improvements. This is a serious matter and with the drought, less are taking water for granted.

I'm familiar with a lot of the forest programs since this is our state's main resource and industry. Right now the push is on reestablishing the Longleaf/Wiregrass ecosystem. I'll be doing some contract work this winter for the CRP. Haven't ever seen too many cattle programs here though so am unfamiliar with them. I doubt we would get too much money since Georgia isn't known for having big ranches like you have in the west

 

[dun]

I doubt we would get too much money since Georgia isn't known for having big ranches like you have in the west

Beofre mobing to MO the only gov program we took adbantage of was BLM grazing.
All of the programs that we've gotten paid for or assistance with have been MO, not hardly a big ranch area.

 

[shorty]

You don't need a big operation to participate. Call your local NRCS office and they will tell you how they can help you.

 

[usernametaken]

Just wondering if you thought it was worth it? Taking the cost share money that is, rather than just biting the bullet and doing it yourself. Seems to me, requirements of some programs are such that by the time you do all the things they require, then pay taxes on the money they give you, it might be just as well to do it yourself and claim a deduction - sometimes. I guess it depends on the program and what you are doing. But what do you think?

There is NCRS with some programs but there is also, at least in my area, several State programs. I think some of that comes from the change over from Tobacco. I actually will probably use more state programs than federal. Some of the programs overlap NCRS and cover the same things too. My tax situation is a bit strange at the moment and I will probably run it by my tax guy first, but even paying taxes on the money, it is more income to work with, albeit earmarked for certain things. There is a yearly limit and max limit in some of the programs that needs to be considered.

I am working on the sheep end of it first ( then I hope to add cattle a little later) , they are cheaper to get started in and I have more experience there. I also like to work my dogs and can train on them. I just closed on my farm the 10th. Fencing, water, native pastures, etc. will work for cattle too. Including the things Dun mentioned there is a program for purchasing "genetic improvement" - buying rams. ( I believe they have something similar for cattle too. ) Requirements to participate in most of the sheep programs are a seminar on sheep, which I just did at Univ. of KY. and intended to do anyway. Also must have 20 sheep to start for some of it. Technically I am a first time farmer, disadvantaged farmer ( female) and who knows what else. Rams must be health and semen tested. A program for native grasses - that one may be federal. The fencing and water, which Dun mentioned, which is my primary interest.

I am equally interested in having NCRS just come out, make recommendations, look at the pasture, look at the mess they made in the woods cutting off timber, ( wonder what a couple of hogs would do for downed timber ? ) helping me plan overall fencing with managed grazing and water in mind. I don't think hardly anyone, if anyone, around my farm is doing managed grazing so it should be a fun one for the area.

I was raised like some of you, not to take government handouts. I could go on a long soapbox about it, but lets just say I've changed my mind . Anything that I can use to get going, to become more productive faster, I will make use of. If I can do that they'll get it back in taxes in the end. Then again, maybe they've already gotten it in taxes I've paid.

 

[usernametaken]

You don't need a big operation to participate. Call your local NRCS office and they will tell you how they can help you.

Whatever the definition of a farm is. 5 acres or something like that ?

 

[Jogeephus]

username taken said,

I was raised like some of you, not to take government handouts. I could go on a long soapbox about it, but lets just say I've changed my mind . Anything that I can use to get going, to become more productive faster, I will make use of. If I can do that they'll get it back in taxes in the end. Then again, maybe they've already gotten it in taxes I've paid.

Personally I don't see anything wrong with taking advantage of these programs as long as you do it honestly. I sure they would never give me enough money to counter what I already pay in each year for services I don't seem to see. Anyway, like you said, its our money anyway wouldn't mind seeing some of it come back to me if possible. Just never have bothered with it but figure I might as well look into it.

 

[sidney411]

We only did one small project and received less the $600 last year but I claimed it on taxes just to be safe. This year will be more so I expect to get a form. Taxes on it aren't very much, better safe then sorry.

 

[usernametaken]

We only did one small project and received less the $600 last year but I claimed it on taxes just to be safe. This year will be more so I expect to get a form. Taxes on it aren't very much, better safe then sorry.

I agree. Better safe than sorry. Such a bummer to find out you owe taxes you hadn't planned on.

 

[C HOLLAND]

Just wondering if you thought it was worth it? Taking the cost share money that is, rather than just biting the bullet and doing it yourself. Seems to me, requirements of some programs are such that by the time you do all the things they require, then pay taxes on the money they give you, it might be just as well to do it yourself and claim a deduction - sometimes. I guess it depends on the program and what you are doing. But what do you think?

Jog, I was approved to have a deep well put in and 3 water stations and the cost share with all the bull that goes with government requirements were going to cost me more than I would pay if I paid it all.

The contractor who gave me the bid told me he could do it cheaper if I didn't use the EQUIP program.

don't you just love free enterprise :lol: :lol: