Comments on: How much money can I save on my taxes having a hobby farm?

By: shazam82054

shazam82054 — Sun, 18 Jan 2009 08:35:10 +0000

considering how much money it takes to fix up and run an old farm, fences, barns, waters, vet bills, which is never ending, it’s amazing that there is any money left over.

Anyway: Contact your Farm Service Agency in your county or (gasp) the IRS, the IRS has a form specific to farming. This form will walk you through what you can and can not use as deductions.

By: Judy

Judy — Sat, 17 Jan 2009 03:17:37 +0000

None if it’s a hobby – deductions are limited to the amount of income you report from the hobby.

By: wartz

wartz — Wed, 14 Jan 2009 00:08:47 +0000

Nothing. The worst you can do is zero out income.

By: StephenWeinstein

StephenWeinstein — Sun, 11 Jan 2009 08:28:15 +0000

You save nothing having a hobby. With a hobby, if you make a profit, you pay tax on it, but if you lose money, you cannot deduct it. A business lowers your taxes only if it is something you do for the purpose of trying to make a profit, not as a hobby or purely for tax purposes.

By: kt_b_blue

kt_b_blue — Fri, 09 Jan 2009 13:57:41 +0000

It all depends, on the number of animals, the type of animal, and what you paid for them.

Farm animals depreciate similar to cars, and you can claim that depreciation – along with any farm expenses – as a loss on your taxes. You must show that you are operating the farm as business.

However, you can only do this for 7 years. After 7 years, your farm is declared a “hobby” and no longer a tax writeoff, unless you can make it turn a profit.

Generally, you’ll need your average 1040, and then schedules A, B, and F to file with it. Some will also need Schedule J. It all depends on your farm.