Farm book keeping

[tnmommy]

Small farm tax advice.

If we sell eating eggs, hatching eggs, and chicks, how much of their costs can be factored in as a "farm expense?" Obviously, the proceeds will be listed as "income." Such as it is. I already have one coop and will be building several more as breeding pens, layers only. Can I also list the feed, etc. if I have receipts for all of it?

 

[ChickenCurt]

Structures are right offs (feeders/waterers included) but I'm no accountant so I'm not sure of the rest. I sell my eggs and poultry tax free and get my feed and hay tax free.

 

[chickencrazy36]

how do you get your feed tax free

 

[ChickenCurt]

My farm holds a business license. With that comes the bells and whistles; figuratively. Is this not why you were inquiring, so you could benefit from farming?

 

[donrae]

Something like this, I'd consult an account/tax person. I've seen advice all over the place here over the years, some very questionable at times.

 

[ChickenCurt]

 

[WalkingOnSunshine]

I'd ask a tax professional. You can't deduct the expenses from the eggs that you eat yourself, so if you only sell some, then you'll have to do the math. Look up the instructions for IRS Schedule F, and good luck.

(we're in the middle of our farm taxes right now.)

 

[oldrooster]

I know it also depends on the size and nature of your farm. Are you on 2 acres and only raise a garden and a few chickens? that may be defined as a hobby, one you can make a little money on but a hobby. Ask a few farmers for a recomondation on a tax preparer or ask at the local feed/farm supply store. BTW buildings and fencing is ussually taken off taxes over a set number of years (called ametrization (sorry spelling I know is off)) certain equipment I am sure can be wrote off in one year but not all of it. Also the IRS (my cousin is in a similar situation of tax write offs) only will let you take something off your taxes if it is used solely for the biusness i.e. your daily drive vehicle to your job in town can't be used as a 100% write off as a farm expence if it happens to be your pickup truck that you also get feed and supplies in, BUT you can allocate some of the expence for just the amount that applies to getting the farm supplies/selling of what your farm produces (hay eggs produce roosters being sold off). you need a good tax person whom knows about how to do it for a farm.

 

[WalkingOnSunshine]

I should have asked--are you an actual business, with a name registered by the state? Do you have tax-exempt status for the farm supplies that you buy?

If not, then I think the egg money is just extra income and you can't write off your farm expenses. But again, ask a tax professional.

 

[ChickenCurt]

When I was just a hobbyist I paid taxes until my flock hit 50+ then my feed supplier treated me favorably; eventually I went legit. Sometimes it just takes that little helping hand to turn a costly hobby into a thriving business. Get chummy with your supplier and once they know you they may shine on you.