Farm question..

[havi]

Not sure if this is where I should post or not. If not...sorry, I didnt know where else to post.



Everyone keeps telling me I should try to get a farm exemption, but Im not sure what that is exactly. Everyone as in friends, family and coworkers. The only thing I can find online is about Ag. Exemptions, but thats not what theyre talking about. From what I can tell the Ag. Ex. is where people earn most of their income from farm land. Which isnt my case at all. I have chickens and plan on getting goats as well and will be making a lot of purchases for getting the goats set up. As well as other livestock in the furture. I tried calling my local tax office and the extension office, but got no help whatsoever. The lady at the extension office was even kinda rude. Eyeing me as if I were trying to commit a crime or something. I just want to know what and who can qualify for farm use. Can anyone help or maybe point me in the right direction?

 

[geoaware]

This is a great question. I will add to it...

I have five acres that are zones agricultural land. I sell about a dozen eggs a week (yep..not exactly a major undertaking)...but still this year I have bought food, equipment (waterers, feeders, lumber and chicken wire) as well as new chickens. And all the gas to go buy stuff.

So my little farming venture has cost me a ton more than my income....but the costs were to help future production.

What of this can i claim???

 

[Katy]

We farm...100% of our income is from farming and even I can't claim my chickens and their expenses as a write off. I would imagine if you spend a certain percentage of your total income on your chickens then you could claim it, but I doubt you spend that much on them.

 

[Mojo Chick'n]

In Kentucky you have to have at least 10 acres to be exempt.

You also have to have qualifying animals - goats, chickens, cows, pigs, fish (farmed fish) even llamas qualify. Horses don't, and I don't know about donkeys, but probably not.

I believe you should talk to the Bureau of Land Management. The tax people are pretty clueless (in my experience). The County Clerk (or whomever covers property taxes) might know who to talk to.

Then, once you do that, what you do is at places like Lowes and TSC you fill out forms that exempt you from tax on items that would be used for the farming of qualifying animals. That includes feed, building/fencing materials, etc... You only have to fill out the form once at each participating store, then when you check out each time, tell them you are tax exempt and give them your phone number, and they will have it on file.

I even got entire buildings from Backyard World tax exempt.

This is our first year doing it, and I have no idea what tax time nightmares might be. As I said, last year I talked to our tax preparer about it, and she hadn't a clue what it was about. (I won't be going back to them again!

).

Good luck -
Meri

 

[Katy]

Are you talking about a sales tax exemption......or state and federal tax stuff?

 

[havi]

Quote:
Sales tax, but if I did that wouldnt I have to file it on my tax forms? I would think so..

 

[FlockEweFarm]

"As well as other livestock in the furture. I tried calling my local tax office and the extension office, but got no help whatsoever. The lady at the extension office was even kinda rude. Eyeing me as if I were trying to commit a crime or something. I just want to know what and who can qualify for farm use. Can anyone help or maybe point me in the right direction?"
Being rude and neglectful would seem to be a job requirement for Ag. Extension Agents in some parts of the country! I have called and left NUMEROUS messages, written emails and even gone by the local Flagstaff Agents office, and she NEVER responds to my requests for information about 4H for my kids. I would chalk it up to just my luck if it was just me having problems, but I have spoken with DOZENS of people who report the SAME issue! I even never got a return call from the State office down in Phoenix when I called to find about about egg sales. You would think people would care more about hanging onto jobs in this environment, especially jobs that are in the public eye and that people tend to interact with quite a bit. I am just going to call the National 4H council and ask for information and share our problem with our local agent with them. The real teeth grinder is, the job actually pays a nice wage for this area, but there are people who beleive that the agent is just a myth.
Good luck witht he exemption, look at the HOMESTEAD exemption, that might help.

 

[Mojo Chick'n]

Ok, just checked for Kentucky (probably the same for any state) and the guidelines are listed by the Department of Agriculture.

Try checking them to see what your state's guidelines are.

Peace -
Meri

 

[havi]

Quote:
Thanks I will do that first thing tomorrow morning.