Goats and Taxes?

Discussion in 'Business Buzz' started by FoxRidge, Jan 3, 2020.

  1. FoxRidge

    FoxRidge Well-Known Member

    809
    Aug 25, 2016
    Minnesota
    So I am sure more than a few of you use your goats with taxes. Is it worth it if you have a small herd of 9 (4 pregnant currently) I have been trting to be very good about saving feed and supply receipts. I have never done this, is it going to be more hassle that it is worth for a smaller herd?
     
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  2. Chelsey

    Chelsey Well-Known Member

    256
    Dec 6, 2018
    Following. My husband mentioned that I should use the goats as a tax right off. I’m not sure I want to try. Most of my receipts go through the wash or I don’t even take it. Plus, I only have five goats. I don’t think that will be much help. He mentioned that even gas can be added to the farm expenses. We’ll probably end up talking to our tax guy soon to find out.
     

  3. ksalvagno

    ksalvagno Moderator Staff Member Supporting Member

    It has to be a business. What are the products that you are selling? You should show a profit within 3 years. It is not that simple. A small herd is cute but looks more like a hobby to the government. But certainly talk to a farm tax accountant who can give you advice on it.
     
  4. Jessica84

    Jessica84 Well-Known Member

    Oct 27, 2011
    California
    Ksalvagno is correct you must show a profit within 3 years and then you can only show a loss so many time. I would have to look again so see how many profits within so many years. Yes goats can be one heck of a tax write off as we all know, but I’m not sure if with 9 goats it would be worth the time to even pay someone or fill out the forums. A lot of things you can’t take 100% off they have to be itemized. It’s kinda a pain in the rump even having a good amount of goats. But you might find it worth it.
     
  5. GoofyGoat

    GoofyGoat Well-Known Member

    Sep 21, 2018
    TEXAS
    This year I have 15 head with 6 bred does and I sell soap and such. Last year I got more money back doing regular taxes but I saved all my reciepts and records from the last 3 years in case I can amend the returns to make it more worth my while. This year though it is looking the that I might be better off doing an ag exempt/farm filing ...still playing with the numbers.
    My sister who's a CPA and raises horses and llamas helps me with the tax stuff and her advice was : when in doubt... wait and amend when it works in your favor. It'll keep you from having audit nightmares if you can back everything up with a couple of years with paper trails.
     
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  6. Hillsideboers

    Hillsideboers Well-Known Member

    349
    Sep 1, 2019
    Iowa
    So this is my first year we are doing the farm and tax thing I have no idea how it’s going to work out. This is the first year we are actually considered a farm. I’m nervous about how it’s all going to work out I’ve saved all receipt for feed, gas to get goats just anything that had to do with the farm. I know we have some forms coming from the FSA office for the programs we enrolled in the past year. We only have 7acres 12 goats
     
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  7. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    It cannot be a hobby farm, you must have profitable income after all expenses are tallied.

    If you buy a new or used work truck, which is used for the goats, such as picking up feed, goats, supplies, you can have that purchase as a write off.
    But it must be only 1 vehicle used. You cannot pick it up in the car, if it isn't a goat work vehicle.

    If you buy a tractor, quad, goat equipment, or other things used for the business.
    Keep all recipes, expenses, break down the expenses, when doing taxes, such as feed, in one pile, vet care supplies(antibiotics) in another ect.

    Investments such as buying a goat.
    If any goat purchased dies, that is a right off.
    However, you cannot claim a goat who was born on your place though.

    Fuel expenses or mileage to go get supplies.

    Make a receipt for all goats sold and buyers, address, phone number, signature on the receipt.
     
  8. lada823

    lada823 Active Member

    195
    Apr 1, 2018
    Ohio
    It can be worth it even for a small herd. But the others are correct, you need to show a profit eventually. You can also still do standard deduction even if you do the farm loss, it's just an additional form.
     
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  9. TCOLVIN

    TCOLVIN TKC Farms

    Sep 21, 2014
    Cobbtown, Ga.
    I don’t know is the word “profit” is even in the goat business. I have never sold enough to pay for the feed bill let alone the medicines, supplies and upkeep. I only have 12-14 full time nannies and 1 buck and 2 wethers than fall under the grandkid protection act. When I started my vet told me, “there is money in goats”. He was right, outa my billfold and into his. Lol . Well goating has it good side, you can get more enjoyment out of keeping the little fellows and they really get to where they know and respect you. I love my goats regardless of expense. I have come to understand the saying that, “ you can make a small fortune in goats, just start with a big fortune”. God knows I love it.
     
  10. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    I do profit from it and am able to support the goats with feed, meds ect, until I get a new kid crop and start again and build up.

    It depends on the market and what kind of goats you have, the better the quality and if they are registered, they sell for more money.

    I do claim them on taxes.
    Though some years, I do not have a profit, because I spent more on the goats, such as a vet call, but at least make just enough to care for them.
     
  11. Jessica84

    Jessica84 Well-Known Member

    Oct 27, 2011
    California
    Lol I believed the small fortune with a big fortune my first few years. It took a LOT of trial and error but now most years I do have a profit. Not a big one mind you but enough they pay for them selfs and I can put a little money away or pay for a unexpected large bill. I defiantly couldn’t make a living off of it.
     
  12. Angel A

    Angel A Active Member

    102
    Apr 4, 2020
    North Idaho
    We have our taxes done and in the beginning we only had goats and chickens and this past yr we added cattle. This was our 4th yr claiming farm expenses and our tax lady hasn’t said anything to us about concerns about profit and losses. We are rather conservative though. I know some ppl who say they write off all the mileage on a truck for farm use plus gas/diesel. I just think when ya start getting greedy you get in trouble.
     
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  13. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    Write off everything you can.
    That is the proper way of claiming taxes with a goat business.
    It is not greed, it is common sense and within the standards of what you can claim. ;)
     
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  14. Angel A

    Angel A Active Member

    102
    Apr 4, 2020
    North Idaho
    I wasn’t saying claiming tax write offs is greedy. I know ppl who do some pretty sketchy stuff when it comes to taxes. So not when your writing off what you rightfully can but when your writing off stuff you shouldn’t be or that is questionable, IMO your asking for trouble. We have our taxes done and I ask lots of questions to make sure we are on the up and up.
     
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  15. Angel A

    Angel A Active Member

    102
    Apr 4, 2020
    North Idaho
    We have a small Boer goat herd and a small herd of Aberdeen (Lowline Angus) cattle and we spent almost $9000 on feed and hay and alfalfa last year....you’d be amazed at how fast it adds up.
     
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  16. Moers kiko boars

    Moers kiko boars Well-Known Member

    Apr 22, 2018
    Oklahoma
    I use a tax atty. They do my self employed business, and my goats. Then its all combined with my husbands taxes. Its a headache, so I trust the professional to handle it. The goats are almost self sufficient
    But that was before the pandemic. So we will have to see what happens in the market. It takes time & alot of effort!
     
  17. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    I have mine done by a professional as well, so we know what is excepted or not. ;)

    If someone is doing it on their own and are audited, they may get into some problems, if they claimed things which are not legal to be claimed.
     
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  18. Jessica84

    Jessica84 Well-Known Member

    Oct 27, 2011
    California
    Lol I’ll be the 35 year old that pulls the mommy card lol but my mom does most of the work but she is also teaching me along the way. I do NOT go claiming things that I shouldn’t. I don’t want them to look at me for any reason. The only time I cheated was when I first started and I had to make a profit that year or it was considered a hobby. So I made sure I had a small profit. That’s been it on the cheating and I doubt if IRS found out they would be all that upset with me lol
     
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  19. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
  20. Moers kiko boars

    Moers kiko boars Well-Known Member

    Apr 22, 2018
    Oklahoma
    Hey Jessica84..does mom give lessons? I could use a good teacher!!!
     
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