If you are like me and you have a few acres in corn one year and soybean the next, and someone else does the farming, then you might get a break on your property tax, but you won't get a break on your equipment. of if you otherwise market your crops, then you'd likely pass muster. or if you load up a truck and sell your porduce at the neighboring town's "farmers market". On the other hand, if you go out and contract grow organic or specialty veggies, sprouts, edible flower blossoms, etc for a few dozen gourmet restaurants. Just to see if it will grow doesn't float with the IRS. Founded in 1991, it was also the first online forum for. But the size of the parcel is not the issue, nor is the size of the tractor, the issue is the effort via your investment in cropping your land. The PY Online Forums is the largest online gathering of Pontiac enthusiasts anywhere in the world. I also know of a small lavender farmer who is a TBN'r on the forums, don't know if he makes a profit. I don't do it, but I have some people near me who do. But on the average hobby farm where the horses are not bringing home the bacon, how many horses is just too many. But that would be with a small specialized farm or a market farm. If I had my way we would have about twenty, but I am quick to admit in this instance my way isnt really the right way. It is possible to farm a 6 acre parcel and turn a profit. If you can't do that you will be classified as a hobby and held to those standards as outlined above. If you are ever audited you will have to show that you tryed to operate the business to become profitable. If you buy a $40,000 tractor for 6 acres you better be able to show why a $40k tractor was needed. In order to do this you have to have a pretty detailed business plan and keep extremely good records. This is a business, not a hobby: No business starts up without. You have to show that you are trying to make a profit and not operate at a loss. And the livestock will add another valuable income stream to your micro-farm. The first thing you are going to be held to is how a business similiar to the one you are trying to do does business. On 6 acres and just trying to see what would grow probably no way you would hold up to scrutiny. The extra $1000 cannot go towards offsetting your primary income if you are a hobby. For instance if you spend $10,000 restoring a car and then sell the care for $9000 you can only claim a $9000 in expenses. As a hobby the only thing you can deduct are expenses that offset the income FROM the hobby.
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