Becoming a farmer? & Tax Exempt on Tractor

[Slowpoke Slim]

It seems to very quite a bit by state. Here you have to have a certain amount of land under Ag operation. The amount required varies a bit depending on what type of Ag operation you're running. If you're growing food crop, running livestock, hay operation, etc, etc. There's quite a bit to getting qualified as "Ag" here. I would start at your state level first, and see what they call the "minimum" operation they will consider Ag.

 

[drssg]

In Ohio, it even varies by area within the state. If part of the motivation is to avoid hassle, I would start by talking with a tax accountant. If you move forward with an Ag business, I would plan on paying an accountant to do your taxes.

Even if there is very little money involved, it will add significant complexity to your tax documents.

 

[STx]

It depends on where you live. In Tx, it's basically the honor system.