Farm Businessgreenspun.com : LUSENET : Countryside : One Thread
OK, I admit I did not look in the old posts for this one! Is starting a farm as a business done the same as any other business?
-- Lynn (email@example.com), September 14, 2001
Lynn, I'm not exactly sure what you mean, but in most ways, I would say yes. Your tax forms are going to be Form F, not Form C, but most of the other tax forms are the same. You also have to file by March 1 if you are on a cash basis, not April 15 as everyone else, and you can make all payments on that date instead of quarterly. That's assuming you make 2/3's of your income from the farm. You make less than that and you have to make quarterly payments (meaning you can't be a part time farmer and get away with making one payment at the end of the tax year).
What did you have in mind for differences?
-- Jennifer L. (Northern NYS) (firstname.lastname@example.org), September 14, 2001.
Our farm is filed as a business, you have to have an intent to actually make money, and as far as I know, you have to generate at least 2,000 in revenue a year to file as a business or you are a hobby farm and cannot deduct expenses as such.
We employ a CPA to do our taxes, farm tax prep is very "touchy" and can set off the audit signals if not done properly. It is worth the expense to hire a CPA in the matter, he/she will make sure you are getting all the deductions you are entitled to.
-- Annie Miller in SE OH (email@example.com), September 14, 2001.
I was wondering about how soon I would have to make a profit, because it sure is not going to br this year! Also about getting started like licensing and what not. We have a CPA for another business, guess I need to call him! Lynn
-- Lynn (firstname.lastname@example.org), September 20, 2001.