I am still a small time cattle operation. I am reading about seperating your ranch from your personal assets.
Would someone please tell me how, on taxes, this will make your check book come out ahead, on either personal or Ranch property:
Create a seperate Ranch from personal property. The ranch, "Cattle Co." now is seperate.
In this deal, Chuckie leases his land to his ranch called, "Cattle Co." and counts the leased money earned on his personal taxes as income. Then, Cattle Co, pays to lease the land from Chuckie, and counts the money's paid on his deductions on income tax.
How on taxes is this method used to come out a head on taxes? I have never leased land before nor have I leased land for money. One of these has to outweigh the other for it to be worthy of seperating the two.
Would someone please tell me how, on taxes, this will make your check book come out ahead, on either personal or Ranch property:
Create a seperate Ranch from personal property. The ranch, "Cattle Co." now is seperate.
In this deal, Chuckie leases his land to his ranch called, "Cattle Co." and counts the leased money earned on his personal taxes as income. Then, Cattle Co, pays to lease the land from Chuckie, and counts the money's paid on his deductions on income tax.
How on taxes is this method used to come out a head on taxes? I have never leased land before nor have I leased land for money. One of these has to outweigh the other for it to be worthy of seperating the two.