Farm Casualty Loss?

[GTS1101]

I had my first farming client in 2010 and I have a question about crop losses. My client normally sells about 15,000 in grapes but this year because of damaged crops she could only sell about half of that 7,500 in sales. Can you she write off the difference as a business casualty loss? Let's say the crops were damaged due to bad weather, or due to pests, or bad soil. Is she able to get a loss for this? Any guidance would be appreciated.

Thanks!

GTS1101

[JohnH]

I'll be interested to know if anyone says "yes" to this, because I had several clients who didn't return this year and I'd like to write off the revenue I didn't receive from them. Maybe they didn't return due to the weather being too bad for them to get outside, my having been a pest in asking them for all that documentation, or their thinking I have bad software because they didn't get the refund they wanted last year.

[thomtax]

There are so many quirky things that farmers can do that I won't say it is not possible. I know I have seen deals for crop losses, but I think most of them have to do with taking a longer time period on things.

However, sort of as JohnH says, What if she fails to fertilize or till properly in a year and the crop bombs? In both cases, all the expenses have already been charged against the income, so would a casualty loss for low production not be sort of "double dipping"? But, as I say, there are some real quirky things for farming. And it seems that most of the benefits are bought - oops, did I mean bribed into being by the big corporate farms.

LT

[Jiggers]

Farm casualty loss

I had my first farming client in 2010 and I have a question about crop losses. My client normally sells about 15,000 in grapes but this year because of damaged crops she could only sell about half of that 7,500 in sales. Can you she write off the difference as a business casualty loss? Let's say the crops were damaged due to bad weather, or due to pests, or bad soil. Is she able to get a loss for this? Any guidance would be appreciated.

Thanks!

GTS1101

The farmer is on a cash basis, correct?

No deduction for what is not sold, since she didn't report the income.

She did write off all of the expenses, didn't she? That is her deduction.

[thomtax]

I'll be interested to know if anyone says "yes" to this, because I had several clients who didn't return this year and I'd like to write off the revenue I didn't receive from them. Maybe they didn't return due to the weather being too bad for them to get outside, my having been a pest in asking them for all that documentation, or their thinking I have bad software because they didn't get the refund they wanted last year.

JohnH,

I take CPE courses each year to learn, but after reading your missive, I'm wondering if maybe you will do a course this year. I'd like to learn what documentation is and where I can get some of it. Does it pay well?

Also - software - I wear underwear, sometimes, and it is usually soft when I put it on, at least for the first week or so. Is this the same thing?

LT

[JohnH]

JohnH,

I take CPE courses each year to learn, but after reading your missive, I'm wondering if maybe you will do a course this year. I'd like to learn what documentation is and where I can get some of it. Does it pay well?

Also - software - I wear underwear, sometimes, and it is usually soft when I put it on, at least for the first week or so. Is this the same thing?

LT

Documentation does pay well, provided it's the right kind. The most important type is a check documenting that they paid for the work you performed for them. Everything else is secondary & mostly optional.

Sorry but I can help with the CPE since I have no credentials to offer. I suffer from a lack of any letters after my name.

As for the underwear vs software, I ain't going there...