Aug
04
Is buying a farm tax deductible?
Wendy Jean asked:
I know we can claim our tractor for farm expense, but can we claim our 46.5 acre farm we bought, we have since built a new house on it as well.
I know we can claim our tractor for farm expense, but can we claim our 46.5 acre farm we bought, we have since built a new house on it as well.
2 Comments
No. You can’t claim the tractor either. You can only claim depreciation on the tractor or a Section 179 deduction. Your investment in the farm is an asset. You can deduct expenses of operating the farm from the revenue you earn from farming. But the cost of the farm is not deductible. Land does not depreciate.
‘buying’ a farm is not tax deductable.
owning a ‘working’ farm has deductions that can be applied against gross income.
the land with house can not be applied against income from ‘farm’
get a quailfied CPA b4 u get a visit from IRS