Posted by James22 on April 05, 2008 at 19:53:23 from (207.179.239.254):
In Reply to: Tax Time posted by JRT on April 04, 2008 at 21:39:16:
I don't agree with your tax lady. If you aren't doing anything foolish and actually working towards a profit; ie, such as not buying a $200,000 combine to do 50 acres, the IRS may audit, but with a good tax accountant there should be no problem. The IRS "requirement" for someone to show at least one year's profit for each 5 years crop farming, or one in 7 years with breeding stock isn't a law, just IRS's "rule of thumb". The key is that you must be attempting to make a profit. Personally I haven't shown a profit for over 12 years in the actual farming endeavor, however do realize this doesn't include the income off the leased-out ground which the accountant considers a separate enterprise. Although I'm coming real close, since about everything is depreciated and recent farm prices and yields have really been outstanding. What does draw the IRS's attention are high income individuals which purchase a few acres and have some "breeding stock" (usually horses) and then show huge depreciations to offset their high off-farm income. A couple year's of this type action will draw the IRS attention like bee's to honey. Another red light for the IRS are household expense deductions for a "home office". I know this is danger zone and don't consider the hassle worth it for these "penny-ante" deductions. One area that you need to pay attention. Since I have a long loss record, the accountant had a question about actual worth of the equipment owned/purchased. It would be real bad if an audit did come around and the equipment I owned/purchased was worth only a small fraction compared to what was written off. Note: the accountant I use has only been audited once in 30 years, and did win that audit case.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - New Hitches For Your Old Tractor - by Chris Pratt. For this article, we are going to make the irrational and unlikely assumption that you purchased an older tractor that is in tip top shape and needs no immediate repairs other than an oil change and a good bath. To the newcomer planning to restore the machine, this means you have everything you need for the moment (something to sit in the shop and just look at for awhile while you read the books). To the newcomer that wants to get out and use the machine for field work, you may have already hit a major roadblock. That is the dreaded "proprietary hitch". With the exception of the
... [Read Article]
Latest Ad:
one 8n and one 9n tractor. totaly restored,pretty much everything is new. one 6ft blade good shape.
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
