School me on income taxes in relation to farming

[Calhoun Farm]

I'm looking to keep up with my spending this year in terms of farming etc.

So far I've been told I can get deductions on the following:

Truck insurance
Mileage I put on truck
feed
medicine
fencing supplies
tractor parts

Anything I'm missing?

 

[Caustic Burno]

I'm looking to keep up with my spending this year in terms of farming etc.

So far I've been told I can get deductions on the following:

Truck insurance
Mileage I put on truck
feed
medicine
fencing supplies
tractor parts

Anything I'm missing?

Get a CPA is my advice.

 

[Bigfoot]

Almost too much missing to even list. Best to open a seperate checkng account. If it a farm expense, write it out of that check book. I think you can chose between deducting miles or the whole vehicle. I'd do the vehicle. Ask about calling a portion of your house, your office.

 

[bbirder]

I'm looking to keep up with my spending this year in terms of farming etc.

So far I've been told I can get deductions on the following:

Truck insurance
Mileage I put on truck
feed
medicine
fencing supplies
tractor parts

Anything I'm missing?

Get a CPA is my advice.

Great advice CB!

 

[M5farm]

I'm looking to keep up with my spending this year in terms of farming etc.

So far I've been told I can get deductions on the following:

Truck insurance
Mileage I put on truck
feed
medicine
fencing supplies
tractor parts

Anything I'm missing?

Get a CPA is my advice.

and when you go take receipts for
utility (if separate from living qtrs.)
misc farm exp
fertilizer
seed
equipment purchased
livestock purchased and any losses on purchased animals only
sales receipts for livestock sold
land rent
land taxes
wages paid for hired help
I'm sure there is something I'm forgetting but CB is right you need professional help with this

 

[Howdyjabo]

Stay away from claiming parts of household expenses- it may be legitimate but its a red flag that draws attention.

 

[Bigfoot]

Stay away from claiming parts of household expenses- it may be legitimate but its a red flag that draws attention.

I agree, but if your taxes are legit, you might as well go for it. If you get audited you want have anything to worry about.

 

[backhoeboogie]

I'm looking to keep up with my spending this year in terms of farming etc.

So far I've been told I can get deductions on the following:

Truck insurance
Mileage I put on truck
feed
medicine
fencing supplies
tractor parts

Anything I'm missing?

Get a CPA is my advice.

Great advice CB!

For the money a CPA saves you, they deserve much more compensation. If you ever had an audit, you already got a friend who speaks the language better than they do.

 

[slick4591]

I keep everything, and I mean everything even remotely associated with the farm. At the end of the year I list them out and give the list and the numbers to my CPA.

 

[NC Liz 2]

My vote is with those who suggested you get a CPA to do your taxes. I would add you should also consider becoming an LLC.
I don't think I saw your/other salary as being an expense. Or medical/life insurance.
Also see: http://agecon.okstate.edu/quicken/index.asp?type=faqs
Liz

 

[jedstivers]

Get a Ag CPA. Any ligit farm expense is deductible. Set up a farm checking acct, you don't have to take every receipt to the CPA. Keep them though so you have proof. Also put a little bait out once in a while so if you are audited they don't have to dig and dig to get something on you. Makes them happy, your happy they stop digging, you write a check, they look good. Everyone's happy, happy, happy.

 

[TN Cattle Man]

I'm looking to keep up with my spending this year in terms of farming etc.

So far I've been told I can get deductions on the following:

Truck insurance
Mileage I put on truck
feed
medicine
fencing supplies
tractor parts

Anything I'm missing?

Get a CPA is my advice.

That is the best advise you will receive!! Different states... different tax laws. Every operation is different on how they are set up with regards to depreciation schedules, etc..

 

[TennesseeTuxedo]

Stay away from claiming parts of household expenses- it may be legitimate but its a red flag that draws attention.

I agree, but if your taxes are legit, you might as well go for it. If you get audited you want have anything to worry about.

I gotta agree with jabo on this one Bigfoot (glad to see you weren't shot btw), no need to draw the IRS in for a closer look no matter how legit the deduction might be. Audits can be costly and the amount of deductions afforded by household expenses really aren't worth the risk.

IMHO (and my CPA's opinion as well)

I would also discourage taking a mileage deduction unless you keep a detailed log book. Most don't.

 

[presmudjo]

My Accountant warns against home offices, unless you are really big and lots of money coming in. Something about when you sell your house, more paperwork, and then taxes or something because it is considered business for a portion of the home. Could just be a Florida thing. We only do Federal taxes here, no state or city taxes.

 

[Ouachita]

Get a Ag CPA. Any ligit farm expense is deductible. Set up a farm checking acct, you don't have to take every receipt to the CPA. Keep them though so you have proof. Also put a little bait out once in a while so if you are audited they don't have to dig and dig to get something on you. Makes them happy, your happy they stop digging, you write a check, they look good. Everyone's happy, happy, happy.

You nailed it. Bait is so important, it should be a part of any business plan albeit unwritten. Sound advice jed.

 

[cow pollinater]

Don't forget dogs, horses, tack, ranch clothing that you wear for work purposes, livestock/farming related association dues, ammunition for your ranch rifle, your ranch rifle, internet service if you use it to look at cattle/farming stuff(you're here so you do). I'm sure there's a few I'm missing.

 

[Bigfoot]

I deduct almost everything for my horses. That might be why I never make any money.

 

[snake67]

I'm looking to keep up with my spending this year in terms of farming etc.

So far I've been told I can get deductions on the following:

Truck insurance
Mileage I put on truck
feed
medicine
fencing supplies
tractor parts

Anything I'm missing?

Anyone asking that question here is a financial accident looking for a place to happen.

No matter what you hear, spend the money and get someone who is paid to do this type of tax work and get it done for you.

You can cheap out if you like - but sooner or later you will have to withstand an audit.

Get someone with accreditation and NOT a family friend - or the lady down the road who does books!

After all - you do not go to the welding shop to get your teeth fixed.

And if you do, you deserve whatever result you get!

Cheers

Bez

 

[j&lfarms]

 

[jerry27150]

go to irs.gov & order a book that shows you exactly how to do your farm taxes, they have special book. most cpa's I have seen don't even know when a farm tax is due, let alone what you can write off. and they will definitely charge you good