To qualify as a farmer for tax purposes, the Internal Revenue Service (IRS) defines a farmer as an individual who is "engaged in farming" and has a profit motive when operating a farming business.
Specifically, the IRS states that "You are in the business of farming if you cultivate, operate, or manage a farm for profit, either as an owner or tenant".
To determine if you qualify as a farmer, the IRS uses factors, commonly known as the hobby loss rules, to assess the profit motive of your farming business.
Additionally, to be considered a farmer for tax purposes, you must make at least two-thirds of your income directly from farm activities. Farming activities include raising or growing a product and selling it without further processing or modification.
It's important to note that someone may have a farm and produce farm income but may not qualify as a farmer under a specific tax provision.
Therefore, it's advisable to seek the advice of a tax professional to understand the IRS tax definitions of farm, farming, and farmer in the context of your individual circumstances.
If you need any further help or have any questions about service, tractors, implements, or anything else equipment-related, please contact your dealer, local mechanic, or call us at 602-734-9944. Please ask about our current new and used tractor supply.
If you are looking for old, vintage, classic, or new tractor parts, send us a part request.
Team Tractor Ranch - #1 Tractor Dealer in Arizona. We sell and service most major brands of tractors including Yanmar, Kubota, John Deere, TYM, Mahindra, Kioti, Case, New Holland, Massey Ferguson, Ford, Deutz, Case IH, Farmall, International Harvester, Branson Tractors, LS, Shibura, Claas Tractor, McCormick Tractors, Valtra, Solis, YTO, Montana, and Nortrac.
コメント