I'm confused …. (not unusual this time of year) … Would someone please explain to me the Domestic Production Activities Deduction …..
I've read all the threads here all the way back to 2005 on this subject and I don't see anyone mentioning dairy farmers in any of the conversations.
I have a dairy farmer that wants to know why I didn't give him the deduction. I don't see in the rules where he qualifies for it.
The dad age 75 this year turned over the farm work to the son. The son does NOT own anything. Dad still owns it all i.e. the farm barn, land, equipment and most of the cows, with the exception of a few cows that son purchased over the years or raised. In January 2008 Dad turned over the milk check to son. So from that point on the milk check comes in the son's name and social security number instead of dads and he gives his dad a 1099-misc non-employee comp, which was the other way around years prior.
It is strictly a family operation with dad, mom, son and son's wife working the farm. There are no employees.
I am confused when I read that raising livestock is considered an activity that qualifies as Qualifying Production Property (QPP) (which a dairy farm would be I guess) but the any taxpayer who qualifies for *ALL THREE* under who qualifies has one that states wages paid to employees. Is this saying this farmer has to have employees in order to qualify? (he has none)
It also states that they could possibly qualify if they receive 1099-PATR with some allocated to them. (which I don't remember seeing that on their forms and need to re-look)
Can someone just enlighten me with a bit of knowledge on the qualifications of this form.
*I need a vacation …. Are We Done Yet? *
Thanks so much for your guidance.
I've read all the threads here all the way back to 2005 on this subject and I don't see anyone mentioning dairy farmers in any of the conversations.
I have a dairy farmer that wants to know why I didn't give him the deduction. I don't see in the rules where he qualifies for it.
The dad age 75 this year turned over the farm work to the son. The son does NOT own anything. Dad still owns it all i.e. the farm barn, land, equipment and most of the cows, with the exception of a few cows that son purchased over the years or raised. In January 2008 Dad turned over the milk check to son. So from that point on the milk check comes in the son's name and social security number instead of dads and he gives his dad a 1099-misc non-employee comp, which was the other way around years prior.
It is strictly a family operation with dad, mom, son and son's wife working the farm. There are no employees.
I am confused when I read that raising livestock is considered an activity that qualifies as Qualifying Production Property (QPP) (which a dairy farm would be I guess) but the any taxpayer who qualifies for *ALL THREE* under who qualifies has one that states wages paid to employees. Is this saying this farmer has to have employees in order to qualify? (he has none)
It also states that they could possibly qualify if they receive 1099-PATR with some allocated to them. (which I don't remember seeing that on their forms and need to re-look)
Can someone just enlighten me with a bit of knowledge on the qualifications of this form.
*I need a vacation …. Are We Done Yet? *
Thanks so much for your guidance.
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