tax breaks for small farms
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- Опубликовано: 9 июл 2024
- There are many tax breaks available to small farms! In this video I review the importance of filing a Schedule F, Federal small farm income tax deductions, sales tax exemptions, and the many state programs for small farm property tax reduction. Taking advantage of these tax breaks can make a huge difference in the profitability of your small farm!
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email: peterelarson3@gmail.com
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Execellent video, I’m a 50 year farmer, farming 500 acres , check everything out, it worth while, Pete your doing a great job, my wife and started with 10 acres, we’re from north east Okla.
Pete, even though the operation my wife and I are setting up is going to end up looking fairly different from yours, you have become one of our top resources for the "what have we not thought of yet" information of which one can never get enough. You're making small farming attainable for others, and for that "thank you" will never be enough. THANK YOU!
this channel is one of the best.
smooth, easy to watch and listen too, not everbearing (some are a bit more entertainer than farmer)
same here, this channel is one of my best go to for farming advice
Pete, you are my role model! I have watched your videos for a while now, but I just got done with your book after just receiving it 2 days ago. You are an inspiration! Thank you for all your how to videos, and all the time you put into helping other farms grow! I know it has to be hard to find the time! I too grew up on a farm, left home, and lost myself. I have been following my heart back to my roots since last year, and you've inspired this old farm girl to make the leap full time. Thank you and God Bless 💜
This was so unbelievably helpful. We're starting a small farm just a couple of miles from you, and I've had so many questions about all of this.
In TN we get a property tax break called Greenbelt for agricultural land. It lowers the value of the land used for farming to its use value instead of market value if I understand correctly. Definitely lowers the tax bill. Another tax break we can get is if we sell a product we have raised or produced ourself as a farmer. We don't have to charge or pay sales tax lowering the amount we have to charge a consumer.
We have it, too. I'd say that it puts it to agriculture market value, not 'HBU'-or-residential, and certainly not industrial market value. Another way to explain it is that ag property doesn't much use the school, police, food stamps, etc., and is more fairly segmented to lower tax.
How does this only have 2.5k likes?? This is priceless info!! Thank you!👏
As a person in the process of looking for farmland and developing his own business plan for a small farm you have definitely given me a lot of good information and you are right definitely cute on programs to look for. Thank you for all your hard work in this video. You've been one of the top people on RUclips I've been watching to try to learn from.
Love your channel Pete. You have given me so many great ideas. Thank you for doing these videos.
Great information. We live in new Hanover NC. They the county have been trying to keep these things secret from us. Seems the county wants your cash. So learning the Game is most important. Thanks for sharing.
Yeah it takes some digging to find out what's available. If I hadn't gone looking I would have never known! In fact, we leased our land to another farmer for years without realizing we were eligible for the property tax breaks.
Incredibly helpful information for a starting farm. Thank you!
Love the amazing and very educational videos you put out for people.
Great work!
Excellent video. I was just sitting here thinking about this after watching Stossel's alpaca video and you answered just about everything I wondered.
Your channel is by far the best I have found
Another great video. I can't thank you enough! I sure hope you are compiling a second book about small farming...with all of these tidbits in it(-:. Every single video has been so pertinent to our situation, lol...
Your videos are a blessing to me, thanks for the information.
Thank you a bunch ….great information!
Was able to expand our farm last year and excited!
Thank you for all the information. This gave me a good start in setting up.
Bravo. I just want you to know that I've learned a ton from you and although I will own soon, I pray a totally different type farm bussiness that you have and will continue to help me a bunch. I love your videos and family and wish you the most continued success! P.s. love to the family.
Many thanks, once again. Very informative and a great "jumping off" point off to the county offices!!!
A good video that would help any farmer or future farmer in our country. I lived in lower New York and I can honestly say the farmer need and deserve all the tax credits they can get. Thank you.
Agreed Larry. Thanks for watching!
Great information. I will be starting a small farm in Montana in the next few years..will keep all this in mind.
Thank you for the presentation on RUclips.
We have just under two acres and we usually don't qualify for anything as far
as taxes go because these rules usually require five acres ...at least.
Thank you so much Pete for this info!
Thanks for the info pete! Ypur videos as always informative and entertaining
Great video and info Pete. Thank you very much for the effort!!
Thanks for sharing Pete!
Your farm information, tractor repairs and other helpful information is the best thing for everyone. You make a good teacher in all aspects. My auction buy farmall supper m. Thanks for your time.
Extremely helpful for small farmers, ranchers and tree/forest producers/farmers.
Very good points! Taxes can make or break you
Thanks so much for taking the time to make this video!
You are welcome rtom675!
This video is so knowledgeable and wisely put ❤
Very informative, as usual Pete. Appreciate your help in the diversity of topics. I did watch this right after I saw the new calving video. That was a more fun video-just saying...haha😀🇨🇦
Great info! Thank you for this!!!
Yeah. I'm doing the "just do something" plan to get started and I get envious when the people in line at Tractor Supply aren't paying sales tax. Also this tractor that I bought.
Lots of great info ! I didn't know most of this stuff .
Thanks Aaric!
Excellent video!
Very helpful! Thanks
Great video, lots of good information.
this is great information! Thank you!
Thanks for putting this out. It's work to save money, but I just look at it as getting paid to find savings.
Thanks for doing this video!
Great vid, thanks for the good info!
I really appreciate the content you are putting out and always enjoy each new video. Keep up the great work!
Thank you!
Wow!! Great information thank you.
Thanks for putting this together
I really appreciate the information, thank you sir!!!!
Thanks. Forgot about the sales tax. Big savings
Thank you for this video!!
Would love to hear you bang out a bluegrass tune on that banjo in the background 😀
Well done,enjoyed
Im sitting here listening to the video writing things down and then i decide to look up more and this video pops up as the first video source. So i thought that was pretty cool.
Super informative video.
Thank you for your help great video
Thanks a lot very clear
Thank you
Good video - we also plug into the tax code to our advantage too and have a good accountant providing guidance. BTW, it appears the guitar in the background has the pickguard on the opposite side and same for the banjo’s fifth string tuning peg... Can I assume there is a left handed musician in the house... 🙂😎👍
Good eye! Yep I'm left handed. Been a beginning guitar & banjo player for about 30 years.
Great info.
I have received several grants from the USDA for my Farm. I also do conservation cover.
Hey Mark can you show me how your getting grants from USDA
Hi Pete, your channel inspires me to start my own farm. What resource would you recommend to start with, that would benefit a new farmer the most?
I really appreciate you making this video for us. You seem like a smart dude. Well spoked and articulately delivered presentation.
I live in Washington, so I have alot of research to do in order to have my property registered for agricultural useage. It seems as though per an RCW, the county assessors office has to help me through the process of re-classifying my land. Any idea how much this will save me every year if I pay $7,800 in property taxes currently?
Great content. Subbed. Do they require you have a dwelling on your farm? Thanks for the valuable information.
Really interesting topic as I decide whether to restart the small family farm that we bought a couple of years ago. Along similar lines, maybe an idea for a new video is to talk about starting out… (sorry if I missed this before) with recommendations on requesting Federal EINs, creating the business and business plan, business licensing, and permits, personal pension plans, medical insurance, dental insurance, and how all of that works. During an initial engagement as I was interviewing a local accountant firm for my wife’s business and our personal situation, they cautioned me about being a “gentleman farmer” and using some of the tax exemptions. I think they were referring to the fact that I still have a full time job and other income but I would argue that it costs me no less time/money to maintain the property that I have every intention of farming and (sort of) making a living and serving off of when I do retire in a few more years (5-10).
I read your post and would love to know how your plan is working out? Seems like you are on the right track. How about a little followup. Neal
From NY and want to start a small farm for all these reasons. Very helpful video.
If u r starting a farm for the tax breaks r a nut job that will be broke for life.
I'm a 5th generation, Indigenous farmer in OK: you're: "WHY" of wanting to start a farm is lacking--perhaps the tax breaks are PART of your: "why", but your farm will not be successful, if those breaks are your only reason, friend. Be encouraged to become self-reliant, in these difficult days (End of Times)...there are many educational videos on You Tube about starting a small farm--sounds like yours may be a: "hobby" farm--50 acres or less, & not your full-time commitment. I recommend: sustainable farming & ranching practices (EX: Silvopasturing, Joel Salatin's practices, etc.) these practices will save you effort & money on: grain feeds, mineral supplements for meat animals, effort maintaining water in fenced pasture paddocks for livestock, etc.. I also encourage you to start slow & small--and maintain a diverse group of farm products: diversity is what helps a farm remain sustainable (EX: produce & meat or eggs). Research what equipment & practices are required for farm dairy sales in your county & state: eggs & milk usually require safety precautions for licensing to sell off a farm. Research if you expect customers to come to you, and what days & times, or if you will need equipment to safely bring farm products to a local farmer's market in your state & County, & what safety practices you will need to do, to keep your customers & livestock/produce safe (bacteria & organisms travel on the bottom of shoes, & on hands very easily). Learn what produce diseases & livestock diseases may affect your specific operation, & educate yourself how to best manage it yourself, before reaching out to hire Specialists. Be encouraged with your interest in getting back to nature, friend, but know there's got to be a: "fire in your belly"/dedication to farming and ranching lifestyle, to be able to get up and go early, on cold mornings, or in extreme weather, to ensure your farm livestock or produce is safe, well-watered, & has the proper nutrients. Be prepared for: "kinks" to be thrown at ya--high winds or extreme deep freezes, & have a plan in place to help manage these morbidity conditions. Livestock usually have babies in the early Spring, when cold weather will freeze them to death, if a baby "drops", overnight, in a pasture (I recommend: small, hobby ranchers place due mothers into a pen inside a barn, for: overnighting her, nightly--keep the floor & hay clean, during birthing time/Spring). Marriage (of the farmer/rancher) is a great institution for: self-survival, business survival on a farm or ranch, & upkeep of personal health--Science research & history backs up these facts. Having a Help-Mate & children to share in certain chores supports the daily requirements of maintaining a farm or ranch, and gives your farm an opportunity to pass down to your generations any wealth (both: knowledge & financial), & builds: Generational Wealth. The same cannot be said, for: retail, food-service, or office employees of corporations (which were bailed out, in: 2008-09, & Post: "Co-Vid-19", are spiraling into collapse, or have already collapsed). God Bless You, friend. Be encouraged. Farming & Ranching has new sets of daily challenges, as the weather & seasons change, & as you progress through crop or livestock production--it's not boring!
FANTASTIC PETE !!!! I am here Upstate New York in Rome … would these ag exceptions work for honey bee farm as well ??
How helpful is the Cooperative Extension office for your farm?
For the tax exempt program through tour supplier do you need any thing filled out first like the first form you showed? I farm in Michigan (just started) and haven’t gotten the moment or capability with this COVID to get to any offices to ask.
I wish West Virginia would adopt some of these laws
I would like to know more about the building grant please
I'd love to hear the process of becoming eligible to be taxed as a farm in NY. I know you need $10k farming profits for 2 years, 7 acres but thats about it.
I may have missed it, do you run farm stuff through the LLC or separate?
You mentioned something about a barn credit or subsidy. Can you give more info on that?
Hi there Pete, I’m relocating in the vicinity of Syracuse, originally from Florida. Was wondering if you’d be open to some sort of apprenticeship. Free labor...I’m an analyst with a dream of operating a small farm someday. Thanks for providing a blueprint if you will to us novice. I’m a Salatin fan as well. Thanks again!
Great info, thanks for posting this video! If a farm is not really profitable, more for personal consumption, is it still a good idea to start filing the schedule F?
I believe you have to be engaged in a farm business to file schedule F. IE, you need to be selling something.
do i need to file a form f every year
Pete I’ve just bought 7 acres. I’m starting with no knowledge. I just bought a 2 horse trailer to pickup our 2 cattle in March 2022 do I need a LLC and should I be filing documents as a business? Or is that only if I’m selling a product.
Hi Pete, is there a minimum acres of land you have to have to qualify as a farm?
You have got to be careful! If you have a good off farm income and the profits that you claim with the IRS don’t exceed a set % of your household income, the county will slam you with full value taxation, instead of the ag value.
Take everything you can get. I have timber in programs, ponds the govt build for me in a program, pasture land in CRP. I don’t live on it, don’t depend on it, or need it. I figure all and all, I’m a few years ahead of where I’d be without it. Don’t leave money on the table.
CRP pays $250 an acre here, and pasture is a major part of our operation.
Hello, I’m sorry, I’m very new to this my husband and I just moved onto land that I’m hoping to turn into a small farm, just farmers markets and such. I was wondering what the rules are for filing a schedule f before you’ve made money. Obviously crops take a while before you can sell them, but we’ve already had a number of expenses. Can we deduct farm expenses from our general taxable income (my husbands w2 job) or only from farming income (of which we have none yet, but hope to in the next year)?
Damn! The taxes over there are OUTRAGEOUS!! How can anyone sustain for long periods of time? My state is the opposite of NY. low taxes all around.
Good video. Who did you get a barn grant thru Jason Ekers Rocky Knob Farm Wv
It was a grant through NY state that expired shortly after we received it.
I have 180 acres and some of it is hay field that we cut. I don't have animals would that still qualify as a farm? I live in upstate Ny and the property taxes are killers for sure.
Pete I always try to watch the videos twice because I find that there are times I miss little things. I got a question about fuel tax credit, I know your have keep all receipts but how do you know the exact tax amount per gallon.
Hi Larry, you just need to keep track of how many gallons you used. When you file your federal taxes, the rate per gallon is right on the tax form. This year it was $.18 per gallon tax credit.
What barn grant did you receive?
we have been raising a small group of chickens. Can we go back and file the schedule F now that we know about this? Also, we want to change our zoning to AG like some of our neighbors, do we have to file a schedule F before we can file for a zoning change?
What is the federal barn grant
I am thinking about purchasing tractor in Colorado. How would I go about getting a EIN ag tax exemption? I have 100 acres in farmland.
In New York the qualification to be called a farm is 5 grand a year on 7 acres.
Hi Pete, I have a 40 acre horse farm in Sullivan County NY and I don’t have a LLC yet. My question is do I need to have a LLC before I fill out a 1040 schedule F and ST-125? Thanks Steve , btw I love your channel!!!
Hi Steve, you don’t need any formal business structure or llc for the sales tax exemption or Schedule F in NY.
@@JustaFewAcresFarm thanks for your reply Pete, I appreciate your help.
St125 form seems every year most stores want a new one they some how magicaly loose it
Pete, are the income tax deductions applicable only to farm income? Put another way, if a farmer had another another source of income, say a spouse who worked off the farm, would that income also get the benefit of income tax deductions? Thanks.
Hi Vincent, I'm assuming you're talking about the IRS schedule F deductions for farm expenses. Say you are married filing jointly, and your wife make $40,000, but your schedule F says you lost $5,000 on the farm. That would net out to $35,000 taxable income.
@@JustaFewAcresFarm Thanks, Pete.
Do you have to have an llc to be able to get sale tax exempt?
No
Three years ago the property taxes on my farm in Cayuga county increased 80% in one year! I argued with the assessor about it ends she told me she had been making a mistake on my assessment for years and fixed it. More over if I wanted to make a stink about it she could go back and fix all the prior years and I would have to pay back taxes. That 2% cap is just political talk. They can do whatever they want.
This is why we need the Fair Tax Law!!
I'm new to this - Since you've filed the schedule F, does that mean you don't do a Schedule C?
My understanding (farmHer, not accountant or CPA) is Schedule F replacesSchedule C in Farm business. You still may need forms 4562, 4767, etc for depreciation of assets. F shows income & expenses.
@@graciecardwell17im a CPA...you are correct except i think you meant 4797 as opposed to 4767
Is this for Canada?
Hi Pete. Just a question. All of your videos that are coming up on RUclips, say a year ago. Is it just RUclips, or haven't you done newer videos. Thanks
I make 3 videos/week. Go to the just a few acres farm channel page (google it) and you will see the full library of videos.
ive really been looking into this for us. Its still confusing for us.
Yeah it's tough to figure it all out, but there's enough money involved to make it worth your while!
Hey I love your farm, that’s number1. I would love to visit your farm and pick your brain . I’m trying to turn my grandparents 21 acres also the 35 acres next door to become a cash generating farm .
Thanks for this video! Any resources for an order of operations?
Do we start the LLC first, start growing first, apply for some sort of farm status?
Were from CA, if that matters.
Hello,
Did you ever get your question answered?
@@wkelsey44 Not yet.
@casey Wilson did you ever get any information regarding the California farm. I am in the process of buying land in this information sounds good
@@kevinhenson942 sorry, I have not. I'm just starting my orchard but already have land.
Being you are an LLC and file a schedule F with your own taxes, does the LLC have an EIN also?
The LLC (typically a single member LLC) should have its own EIN which would be associated with your SSN and reported on the Schedule F and filed with your 1040. If the LLC has more than one member, it would need to file a separate tax return (not within your 1040 filing.) If the LLC files a separate tax return, it will generate a Schedule K-1 which you will use to then report your farm income on your 1040 as a flow-through entity. If you get to that level, you'll probably want to hire a CPA. Some states do have special rules for husband/wife LLCs which have more than one member (2) but still gets reported on the 1040 (that's my understanding...none of the states i deal with actually have these rules so i never have to deal with those firsthand.) I'm a CPA and prepare sch F for my family's LLC farm.