Does anybody have experiencing with claiming small farm status on income tax. I have a breeding pair of goats and a breeding pair of rabbits and a dozen laying hens. I am in the process of building a barn. Been keeping up with expense but don't really know where to go from there.

How many acres you have?? How many head of livestock you have???

I got 2 mater plant an some pepper bushes. Can I ? I have a half acre.
Oh yea the peppers burnt up. They gone.

This is my opinion on Tax write offs for farming... I promise you its cheaper to pay the damn tax, verses someone getting some petty ass animals for tax exceptions..

4 acres. 4 goats

I got three acres just two goats but planning on raising and selling them. Not buying animals for the tax exemption. Kids wanted some animals and I'm trying to cut cost.

I knowed you wus smart when I met ya

I have about 20ac all together and keep 4-5 breeding hefers. I keep all of my receipts for diesel fuel, feed, hay lease and anything else I buy the is related to the farm. My tax lady takes everything off and I get a nice little bonus to my return. Last year it added $3500. I'm going to spend the money anyway, why not throw the receipts in a folder and make a little back?

Do I need to do anything before tax time. Like do I have to be approved or just wait till time and have tax person just turn it in.

Look up the IRS definition of a farm vs a hobby. You don't register or anything like that but if you ever get audited you will have to prove you were farming and that this wasn't just a hobby. Would be hard for you to do in this case is my opinion.

So if this is a business what is your business plan and when do you expect to make a profit on it. The IRS takes a dim view on paying for your pets with tax dollars and I have heard it is a great way to get audited. As a taxpayer I am just about as thrilled to be paying for your goats as I am about paying for Yoshantas EBT card and Obama phone. No real difference as far as I am concerned.

This ^^^^^, better talk with a real tax pro, not a rookie. Folks getting hobby farm, hunting land, hunting club write offs are all smiles till they get audited. I won't even get into guvment cost sharing for wildlife improvements and such. Ya better be careful, I like DW's approach, outa site outa mind, pay a little tax and keep the man outa yer business.

Either that is the nicest 20 acres in the southeast, and the best, fattest cows.. OR, you better hope you don't get audited. It's none of my business, and your grown, so do what you want. Just giving you a heads up. I farm for a living, my soul income and tax returns comes form farming. SO, I I for one hate tax time.. Just throwing that out there..

How often are you showing a profit?

Why would you want to involve the government in any way that you don't have to?
If you plan on continually claiming a loss and don't pay taxes on any profit your asking to be audited.

Keep all your receipts and be honest and by the book and don't worry about it. I have been audited and they actually gave me money back. Even if you mess up they just make you pay what you owe. My business had nothing to do with farming but if I have legitimate deductions I take them.

I agree with Brad and Charlie. You should take all the deductions you can but you aren't really trying to farm if you just have a few animals for your kids. That would be the IRS definition of a hobby.

I do intend on growing the business selling some goats and rabbits each year and selling eggs. I don't plan on staying with just a couple of animals.

This past year, 2014, was my first time filling any deductions for my "farming operation". I've had a few head of cattle since I was 15 or so. I bought a 10ac piece this past year and a few more cows. I kept all my receipts for replacing the entire fence for the property, equipment rental, hay lease, feed/seed and fuel. So everything was pretty much a loss/investment last year. I didn't pad any numbers and my tax lady is the one that held my hand through out. She told me that having a farm is the best deduction base there is. My wife makes real good money so we need all the help we can get when tax time rolls around. I'm not trying to make any dishonest money but, if I can keep some of mine out of Shawnetta's weave, I'm down.

I've already told my wife when our kids grow up and leave I'm putting a herd of cows on our 40. Or were adopting us a lil messsican.