Business Tax Recovery Logo


Tax Deduction Consulting: Farm Deductions Elko NV

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.

Timothy Bock
1635 Villiage Center Circle 140
Las Vegas, NV
Company
Title: President
Company: Summit Portfolio Management
Type
Investment Advisor Rep: Yes
Registered Investor: Yes
Education
Arizona State University Five
Years Experience
Years Experience: 27
Service
Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Captive Insurance,401k Rollover From Employer,CD Alternative,Disability Insurance,Retirement Planning,Real Estate Investment Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Individual Income Tax Planning,Pension for Highly Compensated Owners,Income for Life/ Preserve Principal,Alternative Investments,Life Insurance,Alternative Asset Class Planning,Invest

Data Provided by:
Corey Zimet
10620 So. Highlands Pkwy
LAs Vegas, NV
Company
Company: CBZ Retirement Solutions,LLC
Service
Asset Protection Strategies & Planning,Individual Income Tax Planning,High Yield Bank Accounts,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Health Care Insurance,Retirement Planning,Insurance & Risk Management Planning,Retirement Income Accumulation Planning,Business Income Tax Planning,401k Rollover From Employer,Income for Life/ Preserve Principal,Disability Insurance,Annuities,Annuity Ideas & Strategy Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Pla

Data Provided by:
L. A. Salo, CPA, Ltd.
(702) 898-1280
2625 Wigwam Pkwy Ste 106
Henderson, NV
 
Jackson Hewitt Tax Svc
(702) 395-6061
8060 W Tropical Pkwy
Las Vegas, NV

Data Provided by:
Larry W. Risse Corporation
(702) 252-8597
1919 S Jones Blvd Ste
Las Vegas, NV
 
Jeffrey Goldman
450 Hillside Drive #A107
Mesquite , NV
Company
Title: Financial Consultant
Company: Jeff Goldman
Type
Investment Advisor Rep: Yes
Education
Rensselaer Polytechnic Institute/Bachelor of Science
Years Experience
Years Experience: 6
Service
Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Life Settlements,IRA, 401k, Roth IRA, QDRO Rollovers,Alternative Investments,Disability Insurance,Annuities,Alternative Asset Class Planning,Investment Consulting & Allocation Design,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Individual Income Tax Planning,Fee Only Portfolio Managem

Data Provided by:
Jackson Hewitt Tax Svc
(702) 450-3084
3075 E Tropicana Ave
Las Vegas, NV

Data Provided by:
Liberty Tax Service
(866) 871-1040
4425 Stewart Ave # 109
Las Vegas, NV

Data Provided by:
H&R Block Inside Vons
(702) 395-0709
4854 W LONE MOUNTAIN RD
LAS VEGAS, NV

Data Provided by:
Liberty Tax Service
(866) 871-1040
3250 N Tenaya Way
Las Vegas, NV

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...

Click here to read the rest of this article from BusinessTaxRecovery.com