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    Farm Tax Credit

    NJ Welder has 1+ Acre lot.
    Has House & detached garage/office for welding.
    Other half of property are vegetable gardens & fruit trees

    They sell a few hundred dollars per year in product. $500-800

    He said he had taken a farm credit a few years ago but has not since due to this new/different preparer.
    So, that's why he's here now.
    He wants to take it again - He's trying to find the old return - He said there's like a $2,500 credit.

    I have Never done anything with Farms before.. I live at the Shore!! lol..

    Suggestions?
    Matthew Jones
    Tax Preparation
    Computer Consultant


    Tax Season is here!
    Make sure everything is working, extra ink or toner is available, Advil in top drawer!


    #2
    Originally posted by MAJ View Post
    NJ Welder has 1+ Acre lot.
    Has House & detached garage/office for welding.
    Other half of property are vegetable gardens & fruit trees

    They sell a few hundred dollars per year in product. $500-800

    He said he had taken a farm credit a few years ago but has not since due to this new/different preparer.
    So, that's why he's here now.
    He wants to take it again - He's trying to find the old return - He said there's like a $2,500 credit.

    I have Never done anything with Farms before.. I live at the Shore!! lol..

    Suggestions?
    Never heard of one. Most likely his prior preparer told him that he doesn't have a farm, he has a hobby and he didnt like that. (I bet he has big losses)

    How on earth can you get a $2500 credit for only having $500/income. Sign me up for this one!

    And of course he cant find the old return....

    Chris

    Comment


      #3
      What "farm credit?"

      The only $2,500 credit that comes to mind is the CTC ... the two parts combined.

      A 1-acre lot with a vegetable garden in one corner plus a cherry tree? Oh, please! The guy is a welder, not a farmer.
      Roland Slugg
      "I do what I can."

      Comment


        #4
        I have some farm land in IL, but no federal farm credit. CT has something re farming, but need about 2/3 of your gross income from farming, or maybe it's an absolute dollar floor, so it just doesn't happen in heavily populated Fairfield County, not my clients. (Although, Martha Stewart used something about that CT law to NOT have to pay overtime to her "farm workers" on her acre in Westport. Guess that's why she lives in NY now.) You could check the NJ website for a possible state credit.

        Comment


          #5
          That's what I thought... Thanks - and Another one!!

          Couple finalized divorced last year. Both 6 figure incomes.
          They paid Legal and Accounting fees to determine how things should be done. 2 kids - 1 in college - the other junior in HS.
          Man DID THEY PAY!!

          SHE STILL owes $21,000+ in legal and I believe around $12k in Accounting.

          My question: Since they are both gainfully employed & due to the divorce - Can any of this expenses be considered deductible as legal expenses protecting their income (from each other).
          Alimony, etc....

          My GUT says not but the expense is so Great that I have to ask. Close to $50k in Fees... Ouch
          Matthew Jones
          Tax Preparation
          Computer Consultant


          Tax Season is here!
          Make sure everything is working, extra ink or toner is available, Advil in top drawer!

          Comment


            #6
            Yes. Have your client get a detailed invoice or statement from her lawyer. The fees to gain or retain taxable income are miscellaneous itemized deductions, subject to 2%.

            Comment


              #7
              Originally posted by spanel View Post
              Never heard of one. Most likely his prior preparer told him that he doesn't have a farm, he has a hobby and he didnt like that. (I bet he has big losses)
              How on earth can you get a $2500 credit for only having $500/income. Sign me up for this one!
              And of course he cant find the old return....Chris
              Maybe he was talking about a Fuel Tax Credit (Form 4136) for off-highway use of farm vehicles? I can't see coming up with $2,500 either.

              Comment

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