(800) 853-2651
SHOP NOW

OT, tax question on custom hire-spraying

D

Dave from MN

Well-known Member
I hire out all my spraying to the local co op, am I supposed to seperate the cost per acre charge from the rest of the cost and claim the spray chemicals seperatly on my tax itemization?
 
I don't. I just put it all under chemicals. Makes no difference tho. If you want to break them down for your particular record keeping system its fine. Its all a deductible expense anyways.
 
To seperate them would be to your advantage for next year for reference. Otherwise the application and spray are both expense. I dont seperate them, but that is up to you. If audited I dont think it would make any difference. You will be able to prove the expenses.
 
All correct answers. I lump it all together in one expense as it comes on one bill. If you hired the spraying seperately with another contractor then you could give consideration to putting it under machine hire as a seperate item.
 
What the very nice lady from the IRS told me was if you pay with one check then list it as one item in whatever catagory it best fits. She didnt really care that I called some things supplies, some repairs, and some fuel and oil as long as it all totalled up. I got into that where I might buy a case of engine oil, some chain, and an oil filter all at one place on one bill.
 
On your F form part II you have an entry for "Custom Hire" # 15.

If you are using a Program like Turbo Tax or any other good tax program goto the form F part II line 15 Custom hire. You can click on this it will bring up a supporting form where you detail the work done total it and only the total will be on the main form but the supporting form will print out on your copy of your taxes.
If you are doing it the old fashioned way (by hand) just create your own supporting form and put that with your copies. do not sent it in to the IRS. Put total of all custom hire on line 15 the supporting form will give you your break down.
Walt
 
You must log in or register to reply here.

Similar threads

Bruce from Can.
I took this picture to remind me why I havent any money
Replies
13
Views
1K
Bill(Wis)
B
D
Deere 600/700 sprayer opinions
Replies
1
Views
169
big tee
big tee
S
Drum Mower question
Replies
15
Views
703
Destroked 450
Destroked 450
D
Case 1030 Hydraulic Pressure-Question for John Saeli or others
Replies
5
Views
469
DRussell
D
N
did my mechanic sabotage my brush hog?
2
Replies
22
Views
2K
showcrop
showcrop
Tractor Parts Tractor Manuals

We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today.

Copyright © 1997-2024 Yesterday's Tractor Co.

All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.

Yesterday's Tractors - Antique Tractor Headquarters
Website Accessibility Policy

Back
Top