Dave from MN
Well-known Member
Purchased for both owned and rented property. Are they deductable and do they go under supplies?
- Thread starter Dave from MN
- Start date
Bob Bancroft
Well-known Member
- Location
- Aurora NY
I assume you mean on sch. F ? And I assume because you are farming/working/pasturing the land ? Certainly would be for me.
Dave from MN
Well-known Member
OK, thanks. This tax prep sucks. So darned many reciepts, and so many different things on each reciept. T
Thats where I put them. What the IRS bean counterer told me when she was picking my stuff apart was to not worry about splitting a receipt, put the total amount on the line where the majority of the purchase was as long as everything on that receipt was deductable on that form.
IOWA NORTHEAST
Member
Like the saying goes if you end up in jail....I want to speak to my attorney that did my taxes....Please?..... He is in my neighboring cell.
Bob Bancroft
Well-known Member
- Location
- Aurora NY
Only way it works for me is every day I pay for something, it gets recorded by category, based on sch. F, before I go to sleep.
Don't forget, if you can get your income low enough- external_link's "making work pay" ! I missed it last year, and they actually re-calculated and sent me a check!!!! I've never heard of such a thing. I assume it was an attempt to buy a vote. It was wasted on me.
Don't forget, if you can get your income low enough- external_link's "making work pay" ! I missed it last year, and they actually re-calculated and sent me a check!!!! I've never heard of such a thing. I assume it was an attempt to buy a vote. It was wasted on me.
IOWA NORTHEAST
Member
The nice %^*())*^&^ IRS tax auditor told me just the oposite. She said even the taxable, and non taxable, as well as the actual tax on each recipt must be sorted.
She was the same one that told me a canceled check is NOT any type of recipt. She did use the bank stament to make a fast review with a friend of mine however.
I should point out, my audit was by mail, and streched out over two and a half years.............I won for the most part, other than my accountant charged $130.00 per hr to fight it. So I did settle for some taxes, just because it was the cheapest route. My accountant guaenteed me he could win it for me, but suggested the cheaper way was to settle.
She was the same one that told me a canceled check is NOT any type of recipt. She did use the bank stament to make a fast review with a friend of mine however.
I should point out, my audit was by mail, and streched out over two and a half years.............I won for the most part, other than my accountant charged $130.00 per hr to fight it. So I did settle for some taxes, just because it was the cheapest route. My accountant guaenteed me he could win it for me, but suggested the cheaper way was to settle.
IOWA NORTHEAST
Member
Are you refering to the earned income credit? That has been around for decades.
Bob Bancroft
Well-known Member
- Location
- Aurora NY
This should get interesting.
Some would consider underground drainage a capital improvement, and record it accordingly.
Your definition would preclude one from expensing a roll of cpdp(corrugated plastic drainage pipe), or for that matter, the posts(and fence) the posted sign is going to hang on.
At what point does a legitimate farm expense, that would'nt be spent but for the farm operation, become not a legitimate expense? That seems like an impossible line to draw.
Some would consider underground drainage a capital improvement, and record it accordingly.
Your definition would preclude one from expensing a roll of cpdp(corrugated plastic drainage pipe), or for that matter, the posts(and fence) the posted sign is going to hang on.
At what point does a legitimate farm expense, that would'nt be spent but for the farm operation, become not a legitimate expense? That seems like an impossible line to draw.
Bob Bancroft
Well-known Member
- Location
- Aurora NY
No- Sch. M- New last year
Tom in TN
Well-known Member
- Location
- Southern Middle Tennessee
Iowa,
I think that Bob is referring to the "Make Work Pay" provision of last years tax returns, not the "Earned Income Tax Credit".
The "Make Work Pay" provision provided up to $800.00 to any taxpayer whose income was below a certain (very generous) level, irrespective of how much tax you paid.
I also overlooked it on my return last year, and the IRS sent me a check anyway. I think I received something like $600.00.
I haven't done my 2010 tax return yet, but I'm quite confident that it applies to 2010 also. You're supposed to fill out some schedule and then transfer the amount at the bottom of the schedule to your 1040 Form.
Tom in TN
I think that Bob is referring to the "Make Work Pay" provision of last years tax returns, not the "Earned Income Tax Credit".
The "Make Work Pay" provision provided up to $800.00 to any taxpayer whose income was below a certain (very generous) level, irrespective of how much tax you paid.
I also overlooked it on my return last year, and the IRS sent me a check anyway. I think I received something like $600.00.
I haven't done my 2010 tax return yet, but I'm quite confident that it applies to 2010 also. You're supposed to fill out some schedule and then transfer the amount at the bottom of the schedule to your 1040 Form.
Tom in TN
Bob Bancroft
Well-known Member
- Location
- Aurora NY
correct
I think you're yankin' our chain on that one. Technically, "improvements" or "major repairs" to real estate (and attachments thereto) should be depreciated over time- but they don't expect you to depreciate light bulbs or No Trespassing signs. If you put in a whole new fence, you would depreciate it; if you replace a few rotten posts, expense it.
I hear you, they are a changable bunch. Mine was the full blown in your face come to the house, then sit down for 2 days in my accountants office. Because of their timing they actually got to look at 4 years instead of 3.
She took cancelled checks no problem for everything except depreciable items right off. For depreciable items she wanted receipts too. Two of them I couldnt get, no way. Purchased from a deceased person. She went ahead and took them.
No idea what my accountant charged me per hour. She charged a thousand bucks for holding my hand through all of it. I considered it a bargain.
She took cancelled checks no problem for everything except depreciable items right off. For depreciable items she wanted receipts too. Two of them I couldnt get, no way. Purchased from a deceased person. She went ahead and took them.
No idea what my accountant charged me per hour. She charged a thousand bucks for holding my hand through all of it. I considered it a bargain.
I agree they'd have to catch you,but at the hardware store,they won't give me a tax exempt farm slip because they are going in a permanent fixture,and it isn't deductable as a standard type repair and maintenance item (technically) acording to my tax lady. Not saying she wouldn't find a place to slip it in,not saying she would either.
Actually, they won't give you a tax exempt slip because the light bulbs are not being incorporated into a product for resale. Feed is tax exempt, if you feed it to an animal that you will eventually resell. This is a sales tax exemption- completely different than an item that is deductible from income on your federal income tax. Your post indicates that there may be some blurring of the difference.
If your tax lady is saying a farmer can't deduct cost of light bulbs in the barn on your federal income tax, I believe its time for a new tax lady. If she's misinformed on something that basic, she's probably missing lots of other stuff as well.
If your tax lady is saying a farmer can't deduct cost of light bulbs in the barn on your federal income tax, I believe its time for a new tax lady. If she's misinformed on something that basic, she's probably missing lots of other stuff as well.
super99
Well-known Member
Dave, sounds like you and I are in the same boat.I spent all afternoon working on records to get taxes done. Every year I say I will enter it as soon as I buy it, but that don't last too long. I only had to catch up 11 months worth. I 'm done for today, I got a headache! Chris
Tractor parts aren't incorporated in to anything for resale either,but they are tax exempt here in Michigan. Anything used to PRODUCE a commodity is exempt here.
As far as MAKING something deductible,the brother and sister that run the hardware store,when their Dad was alive and running the place,when something was even a little bit questionable,let's just say I used to break a lot of fork handles. You just have to shop at a local store where they still hand write the reciepts.
As far as MAKING something deductible,the brother and sister that run the hardware store,when their Dad was alive and running the place,when something was even a little bit questionable,let's just say I used to break a lot of fork handles. You just have to shop at a local store where they still hand write the reciepts.
I've ran into lots of stuff that the local farm stores won't sell to you as tax exempt. Anything that will cross over to horse use, for an example. Fencing products fall in that catagory - no tax exemption.
I don't see how light bulbs in a dairy facility are not a justifiable expense. Surely they don't expect you to milk outdoors. I think what you meant was you can't deduct the sales tax when purchasing the bulbs?
The local Rural King stores have had a policy change. They will now sell seemingly ANYTHING tax exempt for farm use, as long as you sign their waiver saying such. I predict that lots of people will get theirselves in IRS trouble with this new policy. I know lots of farmers who cannot resist the temptation of claiming a false tax exemption if it's available at the stroke of a pen.
Paul
I don't see how light bulbs in a dairy facility are not a justifiable expense. Surely they don't expect you to milk outdoors. I think what you meant was you can't deduct the sales tax when purchasing the bulbs?
The local Rural King stores have had a policy change. They will now sell seemingly ANYTHING tax exempt for farm use, as long as you sign their waiver saying such. I predict that lots of people will get theirselves in IRS trouble with this new policy. I know lots of farmers who cannot resist the temptation of claiming a false tax exemption if it's available at the stroke of a pen.
Paul
IOWA NORTHEAST
Member
I know a guy that offered a lady a drink of pop, and she accused him of bribing her.
SO..........He turned the thermostat down, opened the doors and windows to the house, (and could care less if the waer pipes froze and broke). She only had a light jacket, and it was very cold outside, ---and inside.
That probably cost him alot, but he was so proud of himself for cooling her tail feathers off.
Another guy told me, he just sat there staring at the guy, and spinning the cylinder on his loaded pistol. His audit did not do so well either, as they mailed the results to him.
SO..........He turned the thermostat down, opened the doors and windows to the house, (and could care less if the waer pipes froze and broke). She only had a light jacket, and it was very cold outside, ---and inside.
That probably cost him alot, but he was so proud of himself for cooling her tail feathers off.
Another guy told me, he just sat there staring at the guy, and spinning the cylinder on his loaded pistol. His audit did not do so well either, as they mailed the results to him.
Sales tax are a state thing, and would not relate well to Fedral income taxes.
So while I don't doubt you are saying what was told to you, I kinda disagree with the outcome for Fedral income tax application?
I was audited my first year of farming, tho the audit came a couple years later. Was a very simple thing as I believe my biggest deduction was a $55 item. Was interesting tho. I was maybe at State FFA or someplace when the auditor called, mom says to him oh aren't you such and such's grandkid?
Then an auditor from Iowa called a couple weeks later...... Thanks, ma....
--->Paul
So while I don't doubt you are saying what was told to you, I kinda disagree with the outcome for Fedral income tax application?
I was audited my first year of farming, tho the audit came a couple years later. Was a very simple thing as I believe my biggest deduction was a $55 item. Was interesting tho. I was maybe at State FFA or someplace when the auditor called, mom says to him oh aren't you such and such's grandkid?
Then an auditor from Iowa called a couple weeks later...... Thanks, ma....
--->Paul
Dave from MN
Well-known Member
Actually this year they did, had issues with people driving trucks and atv's through my very best soybeans.
Anonymous-0
Well-known Member
I would think that they would be, and that is where I would put them, under supplies.
Anonymous-0
Well-known Member
Not only do I deduct the cost of the No Hunting signs, I deduct the airfare from Oakland to Bismarck, all the auto miles I travel, deprecation on my farm pickup, the 5th wheel camper I stay in,the quad I run around in, the Sharpie I use to sign the No Hunting signs, and the staples. If my farms are posted I don't have wrecked fences, garbage, ruts in fields ect. Of course when I am out there I do other business such as line up fuel, fertilizer, seed or hauling wheat. All legit business costs.
Anonymous-0
Well-known Member
Was this actually a serious question?
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