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Tax Deduction Consulting: Farm Deductions Derby KS

The regulations are fairly simply for someone using the cash accounting method. When the accrual method of accounting is used, it is important to note that the deductions can not be taken until the money is actually spent, or the services received, or the liability is actually realized.

Mr. Randy Yeisley (RFC®)
(316) 719-2900
PO Box 12797
Wichita, KS
Company
Freedom Advisory Group, Inc.
Qualifications
Education: Randy began his career in financial services in 2004 after a 20-year career in the telecommunications industry. After spending years accumulating his own nest egg, he realized he knew very little about protecting and growing his retirement assets. Randy
Years of Experience: 4
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Returns, Seminars Work

Data Provided by:
Flexible Income Tax Services - FITS!
(316) 304-1132
264 Village Lake
Derby, KS
 
MOORE'S TAX SERVICE
(316) 524-7677
1614 MILLS ST
WICHITA, KS
Prices and/or Promotions
$55.OO FED AND STATE

A 1 Tax Service
(316) 264-0349
3555 E Douglas Ave Ste 50
Wichita, KS
 
Neighborhood Income Tax Service
(316) 684-5380
1625 S Rock Rd Ste 123
Wichita, KS
 
Mrs. Angela L. Tejeda (RFC®), MBA
(316) 721-5191
8307 W. 34th St. N
Wichita, KS
Company
Tejeda Financial / Money Concepts
Qualifications
Education: BA - PsychologyMBA
Years of Experience: 10
Membership
IARFC, FPA, SFSP
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, LiabCover, Compensation Plans

Data Provided by:
Jackson Hewitt
(316) 681-3278
1712 N. Nelson Drive, Ste B
Derby, KS

Data Provided by:
Accounting Plus
FAX316-462-0886
P O Box 187
Haysville, KS
 
A-Ok Income Tax Serv
(316) 682-6242
1547 S Oliver St
Wichita, KS
 
Liberty Tax Service
(866) 871-1040
1111 S Rock Rd
Wichita, KS

Data Provided by:
Data Provided by:

Tax Deduction Consulting: Farm Deductions

Farm Deduction

The farm deduction is given to farmers who have certain expenses that are incurred in the ordinary and necessary operation of a farm. The deduction is treated much like a business deduction with some exceptions.

The information needed to calculate and claim the farm deduction is found in the Internal Revenue Code Section 62 and Treasury Regulation 1.162-12. It allows a tax deduction for expenses that are incurred in the ordinary and necessary operation of a farm. This includes maintenance of the farm, its buildings and equipment. As always, the exact definition of ordinary and necessary is sometimes hard to pin down with certainty. Usually, the majority of such expenses are certainly ordinary and necessary, but there is always going to be one or two items that appear to be on the bubble.

The regulations are fairly simply for someone using the cash accounting method. When the accrual method of accounting is used, it is important to note that the deductions can not be taken until the money is actually spent, or the services received, or the liability is actually realized. Many farmers use the accrual method which takes in account projected income and expected expenses because of the cyclic nature of the farming operation. The IRS does not recognize a deposit for seed, for example, that is not going to be received until the following planting season, as an expense in the current year.

Internal Revenue Code 464 limits pre-paid supplies if they exceed 50% of the total farm expense deduction. If the pre-paid supplies are actually used during the tax year, they are fully deductible. The intent of IRC 64 is to prevent tax payers from using farms to shelter income that is not related to the farm.

The farm deduction can be taken on certain expenses, however, that are pre-paid when they constitute an actual commitment that is binding and unchanging. There are rules set out that explain the difference between the deposit and the pre-paid expense tha...

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