farm losses

[luke]

Does anyone else have trouble with tp wanting to claim "farm" losses - "farm" has little or NO income and lots of expenses for depr equipment, fences, fuel, repairs/maint etc? NO attempt is being made to make a profit - What do YOU tell your clients?

[Larmil]

Does anyone else have trouble with tp wanting to claim "farm" losses - "farm" has little or NO income and lots of expenses for depr equipment, fences, fuel, repairs/maint etc? NO attempt is being made to make a profit - What do YOU tell your clients?

What kind of farm is it?

[Burke]

Does anyone else have trouble with tp wanting to claim "farm" losses - "farm" has little or NO income and lots of expenses for depr equipment, fences, fuel, repairs/maint etc? NO attempt is being made to make a profit - What do YOU tell your clients?

Your last sentence says it all. No attempt made to make a profit. If the owner(s) have full-time jobs elsewhere, or even if they are retired in this situation, no loss in excess of income. Especially if they live on it.
If they are actively working the farm, have livestock, rent pasture, sell hay, etc, then you have to use your judgement on it. I have both kinds.

[JG EA]

Agree "working the farm".I don't quite understand why it's happening but this year I've had a rash of Sch C and F and partnerships with no activity.. So this year they got passive staus and all expenses were lost ( for the year anyway.) This is an important designation because of someone who would have gotten more EIC if there was active income.