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Starting on my own- Have Questions!
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<blockquote data-quote="Ruark" data-source="post: 913377" data-attributes="member: 16279"><p>Another important thing is to get a good CPA. Be SURE you get one with farm/ranch experience. If you're using it to generate any kind of income, even just selling a couple of cows now and then, your CPA can guide you through all kinds of tax deductions. The IRS allows you several years to get started; you don't have to make money right off the bat. You need to have some legitimacy, especially in case you get audited: register the farm with the county, open a business checking account, print some business cards, maybe some paper with a letterhead. Keep all your records using a ranch management software package like CattleMax. Join a rancher's organization and have the membership sign up by your front gate. Maybe a little web site. You get the picture.</p><p></p><p>You can deduct any expense related to your "farm operation." Tractors, parts, diesel, repairs and maintenance, tires, office supplies, welding equipment, power tools, herbicides, gates/fencing, pens, feed, troughs, rentals, medicines, repainting, road and pond work, all kinds of things, even the light bulbs in the barn. If you have an old pickup truck, register it as a "farm truck" and any expenses related to that truck (gas, tires, repairs, registration, etc.) is deductible. You can also deduct mileage, regardless of vehicle, for trips into town to buy anything farm-related. I recently deducted a couple of boxes of ammo I bought to shoot coyotes with: "predator control." A couple of weeks ago I traveled to a nearby city to attend training for a herbicide applicator license. All of that cost, as well as the license application fees, were deductible.</p><p></p><p>The question is, can you show that it supports your farm operation? If you can, it's good. Just keep the receipts and record the expenses in your software. There are also deductions for depreciation. For example, the fence around your property depreciates, as well as any capital equipment, farm vehicles and trailers, storage buildings, etc. Again, a good farm/ranch CPA is extremely valuable here; he or she knows how to calculate all this. </p><p></p><p>Hope that helps. Have fun!</p></blockquote><p></p>
[QUOTE="Ruark, post: 913377, member: 16279"] Another important thing is to get a good CPA. Be SURE you get one with farm/ranch experience. If you're using it to generate any kind of income, even just selling a couple of cows now and then, your CPA can guide you through all kinds of tax deductions. The IRS allows you several years to get started; you don't have to make money right off the bat. You need to have some legitimacy, especially in case you get audited: register the farm with the county, open a business checking account, print some business cards, maybe some paper with a letterhead. Keep all your records using a ranch management software package like CattleMax. Join a rancher's organization and have the membership sign up by your front gate. Maybe a little web site. You get the picture. You can deduct any expense related to your "farm operation." Tractors, parts, diesel, repairs and maintenance, tires, office supplies, welding equipment, power tools, herbicides, gates/fencing, pens, feed, troughs, rentals, medicines, repainting, road and pond work, all kinds of things, even the light bulbs in the barn. If you have an old pickup truck, register it as a "farm truck" and any expenses related to that truck (gas, tires, repairs, registration, etc.) is deductible. You can also deduct mileage, regardless of vehicle, for trips into town to buy anything farm-related. I recently deducted a couple of boxes of ammo I bought to shoot coyotes with: "predator control." A couple of weeks ago I traveled to a nearby city to attend training for a herbicide applicator license. All of that cost, as well as the license application fees, were deductible. The question is, can you show that it supports your farm operation? If you can, it's good. Just keep the receipts and record the expenses in your software. There are also deductions for depreciation. For example, the fence around your property depreciates, as well as any capital equipment, farm vehicles and trailers, storage buildings, etc. Again, a good farm/ranch CPA is extremely valuable here; he or she knows how to calculate all this. Hope that helps. Have fun! [/QUOTE]
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