As far as income tax goes if your accountant is familiar with agricultural tax returns then I would say all you got to do is just show up with receipts. All farm income is reported on a Scedule F. It really isn't that bad for small time guys like me and you I have attached a link to the IRS guide on farmers taxes. It actually can be sorta helpful and maybe a good idea to read through even if you accountant is gonna handle everything.
As far buying equipment, parts, seed, chemicals, etc. tax exempt that maybe a state by state thing. In SC all you have to do is fill out a form stating it is for ag use with each vendor that you purchase from and you can buy your stuff tax exempt.
I know of some people that fill out a Scedule F even though all they do is drive around on a tractor and plant food plots. It is my understanding that if they are ever audited the IRS will want to see some evidence that they are actually trying to run a business (make money) not just create a tax shelter. Not in anyway saying that is what you are doing, but it may be good to show a profit every once in a while. I understand that on small acres like ours if you take all of the deductions the big boys do that can be hard, but I try to be rational and fair to myself and the goverment about it. With these prices you might be surprised that you can make a little (not a lot) of money. Best of luck to you!!
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Today's Featured Article - Harvestin Hay: The Early Years (Part 2) - by Pat Browning. The summer of 1950 was the start of a new era in farming for our family. I was thirteen, and Kathy (my oldest sister) was seven. At this age, I believed tractor farming was the only way, hot stuff -- and given a chance I probably would have used the tractor, Dad's first, a 1936 Model "A" John Deere, to go bring in the cows! And I think Dad was ready for some automation too. And so it was that we acquired a good, used J. I. Case, wire tie hay baler. In addition to a person to drive th
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