Farm status income question

ChronicCodez · Apr 27, 2011

Can I include the sale of a Ford tractor in my annual income for my farm status. I live in Union county of North Carolina and I know it varies depending on the state. I was just wondering if generally speaking it would be considered farm income.

Also, where online can I find detailed information reguarding farm status. Do I look at my county or state? When ever I've tried to search for anything I end up getting a headache from government websites that seem to always be designed by a robot or someone who doesn't understand the concept of User Friendly.

Any help would be much appreciated.

MMagis · Apr 27, 2011

In Ohio it would. I have no idea about NC. I would ask an accountant. The Sate Farm Bureau should also be able to help.

sweettractors · Apr 27, 2011

ChronicCodez said:
Can I include the sale of a Ford tractor in my annual income for my farm status. I live in Union county of North Carolina and I know it varies depending on the state. I was just wondering if generally speaking it would be considered farm income.

Also, where online can I find detailed information reguarding farm status. Do I look at my county or state? When ever I've tried to search for anything I end up getting a headache from government websites that seem to always be designed by a robot or someone who doesn't understand the concept of User Friendly.

Any help would be much appreciated.

Did you have it listed as a depreciable item on your schedule F (Federal farm income and expenses) from a prior year? Did you sell it for a profit? Ken Sweet

PossumHound · Apr 27, 2011

Ken has it right. If it was reported as a depreciable asset in prior years the sale should be reported as well. This covers you in case of a future audit by the IRS. In actuality, many, many individuals do not report this kind of transaction. If the transaction is in cash there is very little possibility of IRS audit. If you take a check or card transaction then you're exposed if an audit occurs. Keep in mind that audit frequency increases with reported total AGI.

TR

whistlepig · Apr 27, 2011

Ken and TR are correct on this. You would be better off getting a CPA to set up your farm taxes. Someone that is familiar with farm deductions. It can save you a lot of hassle in the long run.