User Panel
Posted: 10/20/2021 12:40:10 PM EDT
As per the USDA
Farm households typically receive income from both farm and off-farm sources. Median farm income earned by farm households is estimated to decrease in 2020 to -$1,248 from $296 in 2019, and then forecast to decline further to -$1,387 in 2021. View Quote That is very eye opening. And more power to you guys who have the land and time to pull this off. Kudos! |
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Quoted: Wat? View Quote look at the median number......and that is the net profit on the schedule F So for example, let's say I have a cattle ranch. I sell enough F1 steers to get a check for $250,000 I have normal expenses for the year like feed, meds, fuckin bull tore up the fence again, fuel, oil, etc. That adds up to $50,000 so now I have a NOI of $200,000. Well looks like I need a new F250 and a new tractor. That's $200,000 section 179 it and thus 0 income. |
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So does that mean that lawyers will start buying farms instead of charter boats?
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Is this actual farms, or is anyone who uses an AG exemption included?
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Exactly. And you've increased your net worth, which will satisfy the 3 out of 5 year profit rule.
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Is this really news to anyone?
If you're not a mega farm most of them do it as a hobby to rake in the sweet gov cash, it's just another form of welfare. There's a small subset of boutique farmers market type operations but that's small in comparison |
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Quoted: Is this actual farms, or is anyone who uses an AG exemption included? View Quote https://www.ers.usda.gov/topics/farm-economy/farm-household-well-being/farm-household-income-forecast/#:~:text=Many%20farm%20households%20rely%20on,a%20decrease%20of%202.9%20percent No idea, my grand pa sold his land while I was working out a deal with the NRCS to pay him not to touch it for 10 years. |
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Quoted: Is this really news to anyone? If you're not a mega farm most of them do it as a hobby to rake in the sweet gov cash, it's just another form of welfare. There's a small subset of boutique farmers market type operations but that's small in comparison View Quote I would really like to have a casa banana farm, the climate is right for it. very underserved market. |
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Too bad Tactical Garand is in ARFCOM jail. He would have lots of input on this.
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Disneyworld is listed as agricultural land. Do they grow some stuff and have cattle…technically yes. Is that why they list themselves that way, no. Tax breaks baby.
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Quoted: /media/mediaFiles/sharedAlbum/confused-britney-spears--83.gif What am I missing? how is this different than any other business? I can buy new cranes and welding machines instead of a tractor. I can get myself a new truck. If I spend or reinvest all of my earnings....wait for it....I have no earnings. But, who wants to run a business and have no earnings? I actually own and run a business and I have no idea what you're getting at. What am I missing? View Quote View All Quotes View All Quotes Quoted: Quoted: look at the median number......and that is the net profit on the schedule F So for example, let's say I have a cattle ranch. I sell enough F1 steers to get a check for $250,000 I have normal expenses for the year like feed, meds, fuckin bull tore up the fence again, fuel, oil, etc. That adds up to $50,000 so now I have a NOI of $200,000. Well looks like I need a new F250 and a new tractor. That's $200,000 section 179 it and thus 0 income. /media/mediaFiles/sharedAlbum/confused-britney-spears--83.gif What am I missing? how is this different than any other business? I can buy new cranes and welding machines instead of a tractor. I can get myself a new truck. If I spend or reinvest all of my earnings....wait for it....I have no earnings. But, who wants to run a business and have no earnings? I actually own and run a business and I have no idea what you're getting at. What am I missing? I think the difference is that a lot of "farmers" work outside the farm and just use the farm to write off expensive toys (trucks, side by sides, tractors, etc). Their profit motive is weak. |
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Quoted: /media/mediaFiles/sharedAlbum/confused-britney-spears--83.gif What am I missing? how is this different than any other business? I can buy new cranes and welding machines instead of a tractor. I can get myself a new truck. If I spend or reinvest all of my earnings....wait for it....I have no earnings. But, who wants to run a business and have no earnings? I actually own and run a business and I have no idea what you're getting at. What am I missing? View Quote View All Quotes View All Quotes Quoted: Quoted: look at the median number......and that is the net profit on the schedule F So for example, let's say I have a cattle ranch. I sell enough F1 steers to get a check for $250,000 I have normal expenses for the year like feed, meds, fuckin bull tore up the fence again, fuel, oil, etc. That adds up to $50,000 so now I have a NOI of $200,000. Well looks like I need a new F250 and a new tractor. That's $200,000 section 179 it and thus 0 income. /media/mediaFiles/sharedAlbum/confused-britney-spears--83.gif What am I missing? how is this different than any other business? I can buy new cranes and welding machines instead of a tractor. I can get myself a new truck. If I spend or reinvest all of my earnings....wait for it....I have no earnings. But, who wants to run a business and have no earnings? I actually own and run a business and I have no idea what you're getting at. What am I missing? In your business you can write all that stuff off. I have a white collar business. I can't write off a sweet ass marsh buggy escavator. But....If I have a farm I could, plus...because it's actual active income, since I am plowing the fields myself, that section 179 also goes against to reduce my white collar income. So I can use the loss on the Schedule F to reduce the income on my schedule C. |
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Quoted: I think the difference is that a lot of "farmers" work outside the farm and just use the farm to write off expensive toys (trucks, side by sides, tractors, etc). Their profit motive is weak. View Quote View All Quotes View All Quotes Quoted: Quoted: Quoted: look at the median number......and that is the net profit on the schedule F So for example, let's say I have a cattle ranch. I sell enough F1 steers to get a check for $250,000 I have normal expenses for the year like feed, meds, fuckin bull tore up the fence again, fuel, oil, etc. That adds up to $50,000 so now I have a NOI of $200,000. Well looks like I need a new F250 and a new tractor. That's $200,000 section 179 it and thus 0 income. /media/mediaFiles/sharedAlbum/confused-britney-spears--83.gif What am I missing? how is this different than any other business? I can buy new cranes and welding machines instead of a tractor. I can get myself a new truck. If I spend or reinvest all of my earnings....wait for it....I have no earnings. But, who wants to run a business and have no earnings? I actually own and run a business and I have no idea what you're getting at. What am I missing? I think the difference is that a lot of "farmers" work outside the farm and just use the farm to write off expensive toys (trucks, side by sides, tractors, etc). Their profit motive is weak. Yep pretty much this. |
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Thought it was well known ‘tree farms’ were always a big tax write off.
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What's wrong with having some land and using it as a tax shelter?
Fuck the thieving government and their relentless taxation of everything. They created these tax havens, they can fuck off. |
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Many a millionaire farmer around me and they get Badger Care for health insurance.
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Don't forget that thermal and night vision to protect the crops and livestock. It's a vital expense.
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I have 114 acres of mountain side the county taxes as an "vacant farm" or something like that. Please teach me the ways of .gov farm cheese
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If you got time to work another full time job you are gardener not a farmer and should be treated as such. Then again if you can pull it off and get
the tax breaks you are just playing the game can't fault ya for that. |
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Not sure how it works now but when I was growing up my dad got a loan in February to cover farm costs and farmed all year long and sold crops to pay back the loan. Of course the income is going to look backwards.
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We have two farms that are leased for farm, ranch and wind power. I married into it and am not involved but it seems like a huge scam. It makes maybe a little money yet shows as a loss. There’s a rent house involved and maybe 1100 acres. The government pays the farm, the farm pays the government, and we cut a big check to the accountants every year.
Only time it seemed like an honest deal is when we had it leased for oil exploration. |
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I know half a dozen guys who have "Farm" tags on their brand new brodozers. All their trucks are pavement princesses and I guaran-damn-tee you those Blake Shelton looking motherfuckers haven't planted 3 kernels of corn put together. I don't know what it takes to get your property classified as a "farm" but from what I've seen it's just something the semi-rich do to get extra tax cuts. They're all the "daddy's money" types who have family businesses that aren't farm related like car dealerships, construction, commercial property development, etc. |
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usually you got to be able to sell your harvest i n order to qualify for farm status property tax exemptions.
not sure if you just need to show revenues or need to be profitable too |
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haters gonna hate ..... go get you some land and do it too
I know I've never met a "rich" farmer around here. Just good people getting by actually working their farms. |
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I didn’t make the rules. I play within them and use everything I can to my advantage.
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Quoted: ugh, Midcap thread. https://www.ar15.com/media/mediaFiles/114465/troll-1532605_jpg-2137012.JPG View Quote |
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I hope to play that game eventually if I get my grandmothers land. I’m already planning on applying for an ag exemption with a few bee hives, chickens and peach orchard.
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That sounds about right. My fil is a farmer and doesn’t have a pot to piss in or a window to throw it out of. But because he has a 3/4 ton truck he’s wealthy?
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Reporting income to the irs means you’ll get to pay taxes.
You work for the irs or some shit? |
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I know a lot of small time farmers who have another gig on the side. It tends to be grading, construction, or the like. Often something that overlaps their tool and skill use. Because generally speaking without some boutique thing you have to have a lot of land and overhead to make a real profit farming.
But I dont see what you're getting at as being much different from most other small businesses. |
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Quoted: look at the median number......and that is the net profit on the schedule F So for example, let's say I have a cattle ranch. I sell enough F1 steers to get a check for $250,000 I have normal expenses for the year like feed, meds, fuckin bull tore up the fence again, fuel, oil, etc. That adds up to $50,000 so now I have a NOI of $200,000. Well looks like I need a new F250 and a new tractor. That's $200,000 section 179 it and thus 0 income. View Quote View All Quotes View All Quotes Quoted: Quoted: Wat? look at the median number......and that is the net profit on the schedule F So for example, let's say I have a cattle ranch. I sell enough F1 steers to get a check for $250,000 I have normal expenses for the year like feed, meds, fuckin bull tore up the fence again, fuel, oil, etc. That adds up to $50,000 so now I have a NOI of $200,000. Well looks like I need a new F250 and a new tractor. That's $200,000 section 179 it and thus 0 income. It's almost like the system is set up to encourage small businesses. And I hope that continues. |
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Pretty much what happens when you give up control of food production to a small population. They have leverage and use it to create/modify laws to favor them.
If you think it's bad now wait until the government takes over. |
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You say "tax reduction" like it was a bad thing.
It's time for the producers to starve the takers. I will not pay a dime in taxes that I can avoid. |
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Aren’t “big farms”/ corporate Ag just corporate welfare? There’s also the whole revolving door Ag bureaucracy…
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Quoted: You say "tax reduction" like it was a bad thing. I will not pay a dime in taxes that I can avoid. View Quote That’s fine on a personal level but it’s shit policy for a country. Taxes should be low, but uniformly set so that the government can pick favorites or change your behavior to match their goals any more than is necessary. |
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Now I understand what you're saying. So let's say I lived on 30 acres and have some apple trees on it. I should sell those apples each year under an LLC and then write off my night vision that I use to protect my crop? And the side by side I use to harvest them? Why didn't I think of this before, I makes so much sense now that you say it, but it never occurred to me before.
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Quoted: That's fine on a personal level but it's shit policy for a country. Taxes should be low, but uniformly set so that the government can pick favorites or change your behavior to match their goals any more than is necessary. View Quote View All Quotes View All Quotes Quoted: Quoted: You say "tax reduction" like it was a bad thing. I will not pay a dime in taxes that I can avoid. That's fine on a personal level but it's shit policy for a country. Taxes should be low, but uniformly set so that the government can pick favorites or change your behavior to match their goals any more than is necessary. |
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Quoted: Now I understand what you're saying. So let's say I lived on 30 acres and have some apple trees on it. I should sell those apples each year under an LLC and then write off my night vision that I use to protect my crop? And the side by side I use to harvest them? Why didn't I think of this before, I makes so much sense now that you say it, but it never occurred to me before. View Quote |
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Still trying to justify it here. I have all the info I need but trying to decide if the juice is worth the squeeze.
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