Taxes

Discussion in 'Business Buzz' started by HollowbeadRanch, Mar 1, 2009.

  1. HollowbeadRanch

    HollowbeadRanch New Member

    Oct 5, 2007
    NW Alabama
    I will start this off I guess :greengrin: I am rebuilding my herd this year, and have been considering keeping up with everything and turning my business in on taxes next year. I have never done this before, so any info on it would be great!! I already know what I can keep up with and take off... like cost of animals; mileage to and from sales, breeder's farms, and shows; medications; vet bills; and anything else to do with the goats (fencing, posts, gates... etc.). Anything else anyone can think of? And how exactly do I go about setting all of this up?? Do I need to open a bank account under my farm name?? Any ideas or info would be GREATLY appreciated :wink:
     
  2. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    tractor repairs ...barn repairs, fence repairs, new computer ( anything pertaining and used for the business (printers ...paper ink ect) new farm truck.... shaving...vaccinations/worming

    expenses :fuel,feed,vet... all separately added and placed in a column,, named expenses
    Gains.... Animal sells
    Losses
    sells



    I am claiming it as small livestock business (goats)...I never had to come up with a business name at tax time... As long as you do not use a fictitious name while selling your goats you do not need to file for one...just use your own personal name...
    If you make enough per year and need to pay into social security... then you can pay for that ...out of money being paid to you by uncle sam..to keep your points up....If you are not concerned with that then you don't need to worry about it...
    If you have any losses ..such as kids or does... that die ...put down the value of them...at the time of loss..date to,,reason for loss..
    I Have each of my customers fill in a bill of sell made up by me...

    I put the tag #'s if they have them..goat/goats being sold there registered # or if not registered and is registrable... I then put down there sire and dams reg #'s
    if they are not registered ,,then scrapies # and tag #

    Date
    there name .......please print
    address
    phone number

    buyer and seller signature
     

  3. o.g.

    o.g. New Member

    1
    Feb 14, 2009
    What about writing off part of the property (mortgage, property tax, and depreciate the % of the property that is used for the business), can that not be done as well?
     
  4. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    property tax is counted in some way...we use ours... :wink:

    but mortgage and depreciation.. I am not sure.. if it is involved with the goat business...
    maybe someone else can answer that.....I own my property ...so.... I don't know about that issue...sorry I couldn't help with that part....
     
  5. HollowbeadRanch

    HollowbeadRanch New Member

    Oct 5, 2007
    NW Alabama
    Oh thanks Pam that is SUCH a big help!!!!!

    Ok... so one more question... If I decide to open a checking account with my farm name on it (as a business account I guess... with Hollowbead Ranch on it), then do I need to file for something?? Or can I still just file under my name when the time comes?

    Also... if you got out of town for a show or sale, then can't you take what you pay for a hotel room and any fees they charge at the sale or show off your taxes as well? And can't I take off what I pay for my website?

    I am going to get a receipt book to keep up with everything I sale... each person who buys a got from me will get a receipt and the carbon copy will be left in my receipt book for my records. Any other tips for things I could get to make my job a little easier would be GREATLY appreciated!! And thank you again for all of the info! :hug: I meant to ask the lady that did our taxes this year but completely forgot :doh:
     
  6. K-Ro

    K-Ro New Member

    371
    Oct 13, 2007
    Texas
    Right now we operate under a 'Hobby Farm', so all I have to do is keep up my goat records and all of my receipts. You can also claim part of your water bill if you use that water for your livestock, I claim a quarter of my water bill, you have to keep every receipt. Your website should fall under advertising too. Also, any gas used in the tractors, mowers, etc you can claim.
     
  7. crocee

    crocee New Member

    Jul 25, 2008
    Northeast Arkansas
    Brandi, talk to someone at your bank. They can usually tell you what you need for a business account. I know that here you have to have an IRS tax number to have a business account and there are restrictions on what said account can be used for.
     
  8. HollowbeadRanch

    HollowbeadRanch New Member

    Oct 5, 2007
    NW Alabama
    Thanks! I will look into that! :thumbup:

    If I decide not to do that, would that cause a problem when I go to file? Since there wouldn't be an account specifically for the farm money?
     
  9. crocee

    crocee New Member

    Jul 25, 2008
    Northeast Arkansas
    Hmmm good question. Maybe one of our members is a CPA and could help out with this board. It sure would help.
     
  10. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    That' more than one more question....LOL so funny ...no problem though... :ROFL:
    If you make a fictitious name which is your farm name ...yes you will have to file at ..I think it is your County Clerk-Recorder - try to call them and see how much it will be for that name...I don't think it is very much...but prices of things have gone up....no clue what it will be...

    Or..you can just use your personal name to file when the time comes.......

    I am not sure about the shows, going to sales, motel ect..unless maybe if you buy a "replacement goat." that will be classified ...as a purchase for your business...then yes it can be used..not sure though about showing...and the motel...but that is a good question for your tax preparer... :wink:

    With the goat business ..it all ...has to pertain to anything which is used for the regular care,maintenance of ...premises the goats stay in.... Irrigation fees if you have them..


    Also if you use a horse or dog to bring in your goats or have a LGD .....any food ..vet care ect can be used.... because they help with the goats...


    your website is a possibility....because it helps with advertising to sale...

    Ask your tax person and make sure what can be used.....save all receipts.... :greengrin: :wink:
     
  11. HollowbeadRanch

    HollowbeadRanch New Member

    Oct 5, 2007
    NW Alabama
    LOL! Yeah... sorry! I guess that was way more than one question :slapfloor:

    Thank you again! And I will definitely look into all of that!! :thumbup:
     
  12. billmac

    billmac Member

    551
    Sep 8, 2008
    I'm going to be honest about it, but I intend to shake down Uncle Sam for every dime that is due me (it is my money after all). If you have a home office, claim it. Utilities for the barn? Claim it. Record and keep receipts for every dime you spend on the farm for any reason.

    Here's a question: What about insurance? Can you deduct insurance costs for your buildings and any other assets related to the farm?
     
  13. critterhavenfarm

    critterhavenfarm New Member

    66
    Feb 18, 2009
    Southern Middle TN
    Hey Brandi

    I have a CPA that does mine. And yes, I claim all I can! We operate the farm and I have a petsitting business, and we claim everything just under hubby and me, but we do itemize everything. I even claim the vet work for the pyrenees because they are the working dogs of the farm. When Aslan had his broken bone surgery last year, we claimed it. Along with vaccinations, and anything else that comes from the vet including monthly heartworm.

    We also claimed the 4 wheeler because it is strictly used for the farm, hauling hay back and forth and fencing. I keep track of all the receipts and this year swear I will put it on the computer. Usually I have to figure it all by hand. Let's see. I'm 2 months behind on that already. :thumbup:

    Any mileage we run to pick up breeding animals or deliver animals we claim. Any animal that passes away that was our breeding livestock, like Zorro last year, we claim. If it is a kid that passes that we were not keeping we don't claim it. But then you claim what you sell as income. Since we sold alot of the livestock last year including all the llamas we had a 'good year' on paper.

    Even something like a refrigerator purchase for the barn we would claim. Think of it in the terms of a business. What would you claim for that business? As much as you can.

    Susan
     
  14. HollowbeadRanch

    HollowbeadRanch New Member

    Oct 5, 2007
    NW Alabama
    billmac- Good question! I am anxious to hear the answer to that one too!

    Susan- Thanks so much for the info! I hadn't even thought about claiming our 4-wheeler (which it would actually be claiming the GAS for the 4-wheeler since we didn't purchase it this year :wink: ). I also didn't think about it.... but if I get that camera for the kidding stalls I should be able to take that off, AND the hot water heater for the barn (did I mention how much I LOVE my husband??? we have the barn setup to accept a hot water heater so I will have HOT running water!!!) that we will be buying in the next couple of months. I plan on keeping up with ALL receipts... just gotta get me a file specifically for that :thumbup:
     
  15. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    :wink: :ROFL: It's alright...

    I don't think so, but you may want to ask....personally we haven't.... but if you find out ..you can ...please let me know.. :wink:


    Susan...you can claim a kid that are not going to keep... if they die...It is a loss and you claim... what the animal was worth... at the time of death....that animal is a loss...we claim them as well...

    yes definitly...you can claim the camera for the kidding stalls, and yes if you use hot water for the goats.....you can claim that as well...
    You do have a great DH.....hot water ...your spoiled....LOL :hug:
     
  16. MissMM

    MissMM New Member

    645
    Oct 22, 2007
    McGregor, MN
    Our CPA suggested a few creative things we can deduct that we hadn't thought about:

    1. You can claim hotel costs, mileage and a daily per diem for meals for any shows you go to, continuing ed. classes you attend either for animal husbandry of farm/business related stuff (even parking fees).

    2. Computer purchases and even software purchased for business use (Print Shop for business? Of course.... that's how you create your flyers, business cards, etc.). Any ink we buy for the printer gets claimed, paper, etc.

    3. We have a room in the house dedicated to the business - a 12x14 room which is about 15% of the house (square footage wise) so we can claim 15% of the mortgage & household utilities as a business expense.

    4. I bought flowers last year to "dress up" the "curb appeal"...... that could be claimed too. And the plants & seeds I bought for the herb packets I put in the fleece bins... claimable too.

    5. Any and every piece of equipment or goatie-related item I buy, I keep the receipt for tax purposes.

    6. We do our own hay and use the tractor to plow the farm roads, so we keep separate receipts for "farm gas." For vehicles, you have to claim mileage, but since tractors don't typically have odometers, you can claim the gas expense.

    7. Any and all vet bills & med receipts get claimed. Including innoculation bills.

    8. Any advertising fees, for online and/or printed stuff. Including the monthly hosting fee are deductible.

    9. Any knew books I buy on animal-related stuff is tax deductible.

    10. The dorm fridge I bought for the barn & the cabinet to keep meds in can be claimed.

    I could go on and on....... finding a good CPA with a specialty in farm-related business is a must... and be very nice to him or her: be on time for scheduled appointments and make sure you bring in the documentation & receipts they ask for the first time. Be a "good client" and not only will your tax season be less difficult, you might also get a referral out of it :)
     
  17. whatknott

    whatknott New Member

    256
    Feb 22, 2008
    Pennsylvania
    We've been setup as a farm for quite a few years. Be careful calling it a Hobby Farm - the IRS wants to see a profit and that is often hard to do with a hobby farm. I think you have to show a profit in 5 years. We were told that if you have a business accout and have your farm name registered, it shows that you are more serious about your business.
    If you have insurance that is strictly covering you for your farm (not homeowner's which will NOT cover you if someone comes on your property to look at an animal to possibly buy), then it is deductible. If you have farm vehicles, you keep track of how many miles are used for business and then how many total miles and then the percentage is what your deductions can be used. As far as food and motels, you save that as records, but only a certain percentage can be used as a deduction (I think it's 50%).
    If you claim you have an office space, make sure that space isn't also used for other purposes - that deduction sends up a red flag.
    Hope that helps some.
     
  18. HollowbeadRanch

    HollowbeadRanch New Member

    Oct 5, 2007
    NW Alabama
    Thanks everyone!! I am going to have to print this out so I can remember everything!! Everyone has been such GREAT help! Thank you Thank you! :leap:
     
  19. toth boer goats

    toth boer goats Moderator Staff Member Supporting Member

    Jul 20, 2008
    Corning California
    your so welcome...glad we all could help...... :wink: :thumbup: