Farm Losses

[Christian]

I wonder sometimes if the small farmers I prepare returns for ever show a profit. They seem to go on for years and never turn a plus sign. I had only one to ever be audited and he had posted losses for well over ten years. The lady came to his home and found he had a gas tank on the place and had not taken the credit for gasoline used off highway. He had maintained immaculate records and after some time received a CHECK for fuel taxes paid !! He continued to post losses until the day he died.

[Jack from Ohio]

As long as the farmer can show business intent, (IRS has a list of things concerning this) his losses can continue.

[Randall]

They always seem to want that new tractor or some piece of equipment.  I like to take the loss and add back depreciation and interest to get an indication of potential profit or being close.

 

[Christian]

My late Uncle himself an IRS field agent once said something to the effect that they were considered as adding to the land or some such thing. I suppose cows pooping on the soil and passing methane into the atmosphere has it's proponents in congress.