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<blockquote data-quote="db-2" data-source="post: 180707" data-attributes="member: 4743">I have over the years work with people now and then on their taxes.Had this one couple who both work in town with over 100,000 in income.&nbsp; Had a herd of about 10 cows.&nbsp; On their schedule F they wrote off everything including all gas, insurance and you name it.&nbsp; Every year their schedule F would showed a loss of around $50,000 to offset their non-farm income.&nbsp; I told them what they were doing was illegal and got my ass chewed off.&nbsp; You are a hobby rancher and you can not write any expenses off but need to claim all the income.I do not know but one would think that a red flag at IRS came up and we are talking thousands of dollars of unpaid taxes and penalties over the years and maybe a little jail time.I had another farmer who was writing off his boat as he said he used it to haul calves across the water in his pasture.&nbsp; But an IRS audit did change that.&nbsp; (For a living I do not do taxes for people)One time I was asked why I do not buy a ATV.&nbsp; I told him the government will not pay for 40% of it as they do for you.&nbsp; And that atv was never used for any purpose related to farming.&nbsp; Same with a gun purchase or bullets for rodent control.&nbsp; Dog food or the vet for your hunting partner.So for the salary worker it gets old and sometimes farmers do not know when to keep their month shut.&nbsp; And yes my dad asked me to come home and farm.&nbsp; The farm just could not afford me at the time and my salary life has been good.&nbsp; db</blockquote>

[QUOTE="db-2, post: 180707, member: 4743"] I have over the years work with people now and then on their taxes. Had this one couple who both work in town with over 100,000 in income. Had a herd of about 10 cows. On their schedule F they wrote off everything including all gas, insurance and you name it. Every year their schedule F would showed a loss of around $50,000 to offset their non-farm income. I told them what they were doing was illegal and got my ass chewed off. You are a hobby rancher and you can not write any expenses off but need to claim all the income. I do not know but one would think that a red flag at IRS came up and we are talking thousands of dollars of unpaid taxes and penalties over the years and maybe a little jail time. I had another farmer who was writing off his boat as he said he used it to haul calves across the water in his pasture. But an IRS audit did change that. (For a living I do not do taxes for people) One time I was asked why I do not buy a ATV. I told him the government will not pay for 40% of it as they do for you. And that atv was never used for any purpose related to farming. Same with a gun purchase or bullets for rodent control. Dog food or the vet for your hunting partner. So for the salary worker it gets old and sometimes farmers do not know when to keep their month shut. And yes my dad asked me to come home and farm. The farm just could not afford me at the time and my salary life has been good. db [/QUOTE]

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