Re: OT: taxes on small farm

Posted by James2 on October 07, 2005 at 22:30:02 from (207.179.239.101):

In Reply to: Re: OT: taxes on small farm posted by Marcuss on October 07, 2005 at 14:21:51:

The key is you must have a plan or are trying to show a profit. The 2 out of 5 years Paul mentioned are only IRS guidlines and can be "beaten" if you are truly trying to be profitable. I know one fellow at work, whom has never shown a profit in 20 years. He did eventually get audited, but passed. An example which could get you in trouble, would be to purchase a new $200,000 combine to only harvest your 10 acres. If you pull this trick, you better have at least a couple thousand acres you are custom harvesting. Based on my experience, Paul's correct in stating you would write the building off in around 20 years. I believe that is the time frame the accountant is using on my machine shed. There is also a 15 year depreciation. I'm not sure but it may be for livestock or grain bins. That's been my experience, perhaps Supergrumpy will shed some more light.

Follow Ups:

• Re: OT: taxes on small farm supergrumpy 08:46:59 10/08/05 (0)

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