"part time" farm expenses

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  • luke
    Senior Member
    • Dec 2008
    • 437

    #1

    "part time" farm expenses

    What do you guys tell your client who wants to "write off" his new farm tractor, fence, equipment, etc for his week-end farm - has full time (W2) job and is not nearing retirement - just wants to show a loss on his farm because ALL his friends do it....?
  • AJsTax
    Senior Member
    • Jun 2008
    • 629

    #2
    All he has to do

    is to be able to prove the intent to make a profit. Does he have the ability, knowledge, time invested and sales to prove the intent to make this a profitable enterprise? Some do, many do not.
    AJ, EA

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    • Burke
      Senior Member
      • Jan 2008
      • 7068

      #3
      Originally posted by luke
      What do you guys tell your client who wants to "write off" his new farm tractor, fence, equipment, etc for his week-end farm - has full time (W2) job and is not nearing retirement - just wants to show a loss on his farm because ALL his friends do it....?
      I tell them to forget it. It's a highly questionable deduction, unless he can show some income from the enterprise. And a highly audited one. Check out the hours he spends actively engaged in trying to operate the farm as a business, and the income he derives from it.
      Last edited by Burke; 04-04-2010, 11:21 AM.

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