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another tax question

OH NO here we go again!
Why not?
This is one of those cases where I think where and how you buy the item is important.
If the wife picks up a couple of fly traps while buying groceries- where will an auditor think they were to be used?
But if purchased at a farm supply, or on line, in bulk, with a good receipt, your legitimacy is much easier proved.
 
sorry guys. 2010 was a big jump for us in our operation and also, gross income doe to the crops. Trying to be as accurate and smart as I can be about my income/expenditures. I would rather ask, than act like I know it all. Got over that when I was 16. it frustrating when you have the home and farm in one spot. Like trimmer string, trimmer is mostly used for weeds around farm buildings, but is alsso used around the house.
 
You can deduct any repairs/materials/shop supplies/services that apply towards your equipment/property. If you have a in home office, deduct the sqaure footage, pro-rate your utilities for that space, percentage of your computer/printer that's used business, trash pickup, telephone/cell phone usage. Basically, you can deduct anything that you can justify supporting the business. I deduct my tractor pulling expenses under Advertising (lodging, fuel)for each pull. Since I'm the coordinator for our 4th of July activies, I make a invoice for the my man hours/equipment and attach a receipt from the town with their non-profit tax ID#. No problems to date. Been aduitted 3 times the last 10 years with no faults noted. Matter of a fact, the last audit, the auditor told me to deduct my tractor pulling expenses.
 
As far as the string trimming materials, I would split the cost by estimating the percentage of use between farm and home. Mark your receipt accordingly.
 
Advertising? What services or product are you selling that you could be advertising? Custom farming services, repair business or selling seed corn? Don't see how you could get the IRS to swallow this if only producing general commodities.
 
James22 I have a landscaping/excavating and general property maintenance business. I've been an accountant for the Department of the Army and been doing my own taxes for over 35 years. Signs on all my vehicles, plus sponsor with money/time for all community activities. Legal deductions.
 
No need to apologize. I'm just picking on you. It's good that you're concerned. It takes more effort to be a good citizen. I guess it's just that some of us are cursed with having to try to be that so we can sleep at night.
 
I hope the IRS and the State Income people have come to their senses and stopped spending dollars chasing dimes. The ones they need to be after are the ones that do not report income from cash sells when they are in business to make money. I am guessing it is and has been one of the large areas of drain on our tax system.
 
How many of you farmers/independent business guys are incorporated/LLC's? If you are doing bussiness as a family farm and claiming everything under your SSN. Stop! Get a EIN (Employer Identification Number), do a LLC (Limited Liabity Corporation), and take what deductions we can take until the REGIME cuts them off. I'm not going to give external_link anything other than I owe!!!!
 
Why don't you use a free copy of Turbo Tax. I bet your missing more deductions than you think.

For $100 for your own copy, is cheap advise, even if the program misses some deductions that a hired pro wound find.

T_Bone
 
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