Don’t Buy A Farm Unless You Understand A few Things

[5030]

If your a succesful farmer today. You are someone who knows the Local, State and US tax code better than the IRS does. So I would think knowing tax codes is a critical skill to the success of a farmer today.

I have a professional accountant for that. In fact, since the farm has become an LLC and we write everything off, we have not paid any extra Federal, state or local taxes and we usually get a healthy refund on what we do pay. Like purchasing new equipment ( tend to turn used equipment and replace with new, at least one piece every year (minus the tractors because I will never buy a T4 final tractor but that is another subject), but implement wise I turn them yearly for new and take the oldest first. One thing I don't get concerned with is the finance interest rate because the interest paid is a 100% write off plus I'm depreciating the equipment as well.. Once it's fully depreciated it's usually time to upgrade.... and I do just that. This year was a new 45K round bailer and the 8 year old one went down the road as a trade in. Been dealing with the same accountant and his financial firm for over 30 years now and the also manage my retirement accounts and there is a good solid and well invested 6 figures in them. I have so much that I could never spend it all, well, I probably could but I'm more frugal than that. It's my hunt money. Every year I go on an outfitted hunt somewhere, could be here or could be in a foreign country, whatever my hunting partners want to do. We are all basically in the same situation finance wise and they also farm

 

[riptides]

I take it the whole gist of this thread is "You must want to be a farmer if you buy a farm".

Not so in a lot of cases. There is the whole side of speculation, investment and/or combinations of those PLUS those seeking peace, tranquility and purpose.

Funny, I have yet to find any of the above I just mentioned. ROTFL.

To me, a farm is just another place, offering different possibilities for a life or lives.

 

[Larry Caldwell]

Biggest consumers of alcohol too. Least around here they are. Most all the successful farmers I know are usually crocked by 5pm. Why they all run JD auto steer units. You can be half in the bag and still come out smelling like a rose.

You must be from Texas. I used to work with an old guy whose favorite expression was, "If I had a farm in Texas and a home in Hell, I'd sell the farm and go home."

Beer sweat. The day drinker's justification.

 

[Larry Caldwell]

I have a professional accountant for that. In fact, since the farm has become an LLC and we write everything off, we have not paid any extra Federal, state or local taxes and we usually get a healthy refund on what we do pay. Like purchasing new equipment ( tend to turn used equipment and replace with new, at least one piece every year (minus the tractors because I will never buy a T4 final tractor but that is another subject), but implement wise I turn them yearly for new and take the oldest first. One thing I don't get concerned with is the finance interest rate because the interest paid is a 100% write off plus I'm depreciating the equipment as well.. Once it's fully depreciated it's usually time to upgrade.... and I do just that. This year was a new 45K round bailer and the 8 year old one went down the road as a trade in. Been dealing with the same accountant and his financial firm for over 30 years now and the also manage my retirement accounts and there is a good solid and well invested 6 figures in them. I have so much that I could never spend it all, well, I probably could but I'm more frugal than that. It's my hunt money. Every year I go on an outfitted hunt somewhere, could be here or could be in a foreign country, whatever my hunting partners want to do. We are all basically in the same situation finance wise and they also farm

It amazes me how many people don't have a good tax accountant. I have been retired since 2012, and think 2023 may be the year I switch to Turbotax. My accountant has paid for himself many times over the last 40 years.

 

[coobie]

Biggest consumers of alcohol too. Least around here they are. Most all the successful farmers I know are usually crocked by 5pm. Why they all run JD auto steer units. You can be half in the bag and still come out smelling like a rose.

Must be a blissfield/adrain thing.

 

[Hay Dude]

So a guy with a 90HP tractor and a round baler is a source of knowledge in farming?

 

[Diggin It]

Must be a blissfield/adrain thing.

Yo, Adrian!! ADRIAN!!!! Aaa Dree Ann!!!!


I drove through there once.

Once.


Some time in the mid 80s. I forget the road now, some state highway, north/south. It was disgusting. Like a scene out of a horror movie. Every single tree looked like a giant q-tip, completely covered, every branch was a giant mass of web worm webs.