legalities on 'being a farm'

Discussion in 'Homesteading Questions' started by Meg Z, Mar 17, 2005.

  1. Meg Z

    Meg Z winding down

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    Can someone please direct me to the governmental sites that tell me what I need to be/do to qualify as a farm for tax purposes, so I can outline my goals better? I have searched and searched, but cannot find what I need. I guess I'm not using the right keywords, but I don't know what they should be.

    Thanks very much

    Meg
     
  2. cowgirlone

    cowgirlone Well-Known Member

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    Meg, I could be wrong, but I think you can contact your county tax assessor's office and see if you qualify. In some areas you need to have at least 5 acres. They will ask how many animals you have etc., and have you fill out an application for a tax card.
    We've had our card for so long, I'm foggy on how we initially went about getting it! :eek:
     

  3. Michael W. Smith

    Michael W. Smith Well-Known Member

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    I went to my state representative's office and got paperwork on starting a business. Once the paperwork is complete and sent in, you are a business and can do taxes including expenses and profit - provided there is any profit!
     
  4. agmantoo

    agmantoo agmantoo Supporter

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    For NC here is your site
    http://www.dor.state.nc.us/publications/property.html
    Read AV-4 and AV-5
    If you qualify on this form then all the benefits of being a "farmer" will be yours. You will have to apply for a tax number as a farmer additionally but you need to meet the above to get the tax relief for your property in order to qualify in total.
     
  5. Thumper/inOkla.

    Thumper/inOkla. Well-Known Member

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    We got our info on starting up at the county assessor's office. The county Extention Office could help too.
     
  6. WisJim

    WisJim Well-Known Member Supporter

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    Talk to a tax expert who does farm returns, and they should be familiar with the requirements. In Wisconsin, I think that you have to actually make money doing farm-related activities a certain number of years out of so many years, or maybe that is a Federal tax requirement, or maybe I don't recall accurately. Anyway, talk to a tax preparer, maybe after April 15th when they have more time, or if you haven't had your taxes done yet, and you have a professional do them, ask when they do your taxes. If you are doing your own taxes now, you will probably find it too complex after you start farming. We have ours done by an expert, even though my wife used to own an H&R Block franchise, and later worked for other tax preparers--things just change too much over the years.

    Jim
     
  7. Meg Z

    Meg Z winding down

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    Thanks very much for the info, the places to check...which may all be used for multiple things...and especially for the NC web site. I knew I could count on you guys!
    Meg
     
  8. farminghandyman

    farminghandyman Well-Known Member Supporter

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    there is probaly a Usda office in your county, look under the US goverment listings in the phone book, and look up, called the "farm service agency", they are the one who actualy admisaters farm programs, and will tell you if your a farm or not,

    and if you have farm sales or losses you put that on schedule F of the income tax paper work,
    http://www.irs.gov/pub/irs-pdf/f1040sf.pdf

    USDA

    http://www.usda.gov/wps/portal/usdahome
     
  9. Sparticle

    Sparticle Well-Known Member Supporter

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    Yeah thanks from me too! I was signing on to ask basically the same thing.
     
  10. Darren

    Darren Still an :censored:

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    In West Virginia the state requirements for being considered a farm and the federal requirements are the same. It has nothing to do with taxes but rather the amount of your total production whether it's sold or kept on the farm. It's what the assessor uses to determine if the property qualifies for the lower property tax rates because of agricultural usage.

    To get the sales tax exemption you'll need a tax ID from your state. In our case we sell nothing off the farm. However the farm meets state and USDA requirements and is considered a farm. We did not get a tax ID because we're not in business. We pay the sales tax on each purchase. If your farm is a separate business you'll also need an EIN from the IRS.

    In short the classification of property for ag use from a WV state and USDA (federal) point of view have nothing to do with taxes.
     
  11. papaw

    papaw Well-Known Member

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    This is interesting stuff. Thanks for the thread.
    Anybody got any info on farming in Alabama ... from the legal side of things......
     
  12. mysticokra

    mysticokra Well-Known Member

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    The Alabama farm we purchased was already on the books with NRCS.
    We had to notify the county, but that only took about 30 minutes.

    The government was happy to put us on the list. I guess they get funding for the number of farms they bother.
     
  13. papaw

    papaw Well-Known Member

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    thanks ...what county?