How to be considered a mini-farm?

Hi


To your post..... Considered by whom?

A mini-farm is a term that comes up often in real estate... without animals present, or that have facilities present for horses, or just one type of animal but nothing else.
They seem to run anywhere from an acre to 10 acres (after that people don't like the word mini, LOL).

So is it zoned A1 or something else allowing livestock? Facilities present for at least one kind of livestock? I'm pretty sure those things make a mini-farm. Something you intend to farm that is mini.. LOL!

 

I know she's supposed to keep track of expenses and such for taxes and stuff.

To be considered a "farm" for tax purposes, you have to be selling a product or products, and operating as a business would.

That means complying with all regulations and required licensing or inspections, and keeping detailed records of expenses and income​

 

If you don't get any income I think they would be considered pets. If you can itemize expenses vs income and factor in things like actual expenses (feed, electricity, etc...), depreciation, and all of that, a lot of times on a 'mini farm, hobby farm' or whatever else you call it, you can come out ahead at tax time. That's after you paid $2000 for the hen house, $100 for the chickens, $1000 for feed for a year, all so you could sell 12 dozen eggs at $2 a dozen.

 

The term "mini-farm" really has no exact definition, as far as tax purposes, etc. It's a subjective term, more of a descriptive real estate term than anything else.

 

I see you are in Alabama, so am I. I went down to the courthouse to declare a homestead, and found out that because we have over 5 acres, we can claim a 'mini-farm' tax ajustment. This will lower my property taxes.
In Alabama you can get your property taxes lowered with 5 or more acres, so if you sell from your land I would think you could take tax advanages on your yearly taxes. That is something you would need to speak to your CPA about.

 

A friend of ours here in CT is looking to get farm status so he will get a tax break. I think the state said he has to sell at least $1000 worth of product a year and then his property qualifies

ETA: They have about 4 or 5 acres.

 

The Farm Bureau uses the amount of sales of agricultural products to determine if you are a farm.

 

This is a bit off the OP topic- but speaking of taxes. If you sell a few dozen eggs during a month (no crazy amount of sales) do you need to file taxes on that? Once we are up and running I was planning on just selling eggs to friends and neighbors, maybe even set up a cooler at the end of the drive way with a change box. (until some one steals my eggs- then that will change). I also would like to put some veggies down there for people to buy and just put their money in a box.