One of these days, the IRS' computer will select your case as with a financial anomaly ( as an example that you used... $500 ) and a letter for an invitation to appear . Oh , and bring in all of your financial records to explain the anomaly. Call : Yes, I understand the time that full time farmers spend at their land as I have been a full time rancher for 37 years as the owner, jack of all trades, chief cook , and bottle washer. Uncle Sam has been known to hire people that were born / raised on a farm as well as owning farms. Have you heard of George Washington, or Thomas Jefferson , or Jimmy Carter to name a few? As for the time one spends on the cost of production of an item, one allocates one's time as in any business ... it's called a time sheet ... the actual time one spends at the subject work activity ( excluding time spent sleeping, living on the property or talking to the next door neighbor over the back fence) that one uses to establish one's cost of doing business for one's produce. Farmers do not have a set minimum wage, their pay is determined by the marketplace of what the farmer is willing to sell his produce for and what the buyer is willing to pay for it.
Yup, you can .! However , you have to fill out the IRS Form " F " for farm sales activity come April 15 as all income is subject to taxation.
