When it comes to farming, there are a plethora of tax write-offs and deductions that can help you save big. From accountant fees to Wi-Fi bills, we've got you covered. Here's a comprehensive list of tax write-offs and deductions that every farmer should know about.
Keeping track of your finances can be a daunting task, especially when you're busy running a farm. That's where accountants come in. They can help you manage your finances, ensure you're compliant with tax laws, and even help you save money on your taxes.
How to write it off: You can deduct your accountant fees on Schedule C, Box 17.
Getting the word out about your farm and its products is crucial for business growth. Whether it's through social media, local newspapers, or billboards, advertising is a necessary expense. It not only helps attract new customers but also retains existing ones.
How to write it off: Deduct your advertising expenses on Schedule C, Box 8.
Ever had a business meeting over a meal? Well, those meals can be written off too. Whether you're discussing business with a potential partner or client, the cost of those meals can be deducted. Just make sure to keep those receipts!
How to write it off: Business meals can be deducted on Schedule C, Box 24b.
Running a farm often involves a lot of driving, whether it's to deliver products, pick up supplies, or attend business meetings. As such, car insurance and registration are necessary expenses that can be written off.
How to write it off: Deduct these costs on Schedule C, Box 15.
With all the driving involved in running a farm, your vehicle is bound to need some upkeep. Regular maintenance, like oil changes and tire rotations, can be written off as a business expense.
How to write it off: Car maintenance costs can be deducted on Schedule C, Box 9.
If you've recently purchased a car for your farming business, you're in luck. The cost of the car and its depreciation can be written off. This can significantly reduce your taxable income and save you a lot of money in the long run.
How to write it off: Deduct these on Schedule C, Box 13.
Farming is hard work and sometimes, you need an extra pair of hands. If you've hired help, whether it's for a one-time project or on an ongoing basis, you can write off their wages as a business expense.
How to write it off: Contracted help can be deducted on Schedule C, Box 11.
Farming equipment can be expensive and it doesn't last forever. The good news is, you can write off the depreciation of your equipment. This can help offset the cost of eventual replacements.
How to write it off: Deduct equipment depreciation on Schedule C, Box 13.
Protecting your farm with an insurance policy is a smart move. And the cost of that policy? It's a deductible business expense. This can help make the cost of insurance a little more manageable.
How to write it off: Deduct your farm insurance policy on Schedule C, Box 15.
Staying up-to-date with the latest farming techniques and research is crucial for running a successful farm. If you've paid for any educational resources or attended any courses, you can write off these expenses.
How to write it off: Deduct your education expenses on Schedule C, Box 27a.
From tractors to irrigation systems, farming equipment and machines are a major part of running a farm. These big-ticket items are considered fixed assets and their cost can be written off.
How to write it off: Deduct these costs on Schedule C, Box 13 (Fixed assets).
Everyday farming supplies, like gloves, tools, and cleaning materials, are necessary for running a farm. These costs can add up quickly, but luckily, they can be written off as business expenses.
How to write it off: Deduct farming supplies on Schedule C, Box 22.
If you're raising livestock, you know that feed costs can be significant. But don't worry, these costs can be written off. This can help make the cost of raising livestock a little more manageable.
How to write it off: Deduct feed costs on Schedule C, Box 22.
If you run your farm business from home, any furniture you've purchased for your home office can be written off. This includes desks, chairs, and even filing cabinets.
How to write it off: Deduct home office furniture on Schedule C, Box 18.
Buying livestock is a major expense for many farmers. But here's some good news: livestock are considered fixed assets, which means their cost can be written off.
How to write it off: Deduct livestock costs on Schedule C, Box 13 (Fixed asset).
If you're traveling for business, whether it's to attend a farming conference or meet with a supplier, you can write off your meals. This can help make business travel a little more affordable.
How to write it off: Deduct meals while traveling on Schedule C, Box 24a.
If you sell your farm products, you'll need packaging materials. These costs can add up, but they can be written off as a business expense. This can help make the cost of selling your products a little more manageable.
How to write it off: Deduct packaging materials on Schedule C, Box 22.
Whether you're parking at a business meeting or at a supplier's warehouse, parking fees can be written off. Just be sure to keep your receipts!
How to write it off: Deduct parking fees on Schedule C, Box 27a.
Running a farm can use a lot of power, and those power bills can be hefty. But don't worry, you can write off your power bills. This can help make the cost of running your farm a little more manageable.
How to write it off: Deduct your power bill on Form 8829.
Protecting your farm property with insurance is a smart move. And the cost of that insurance? It's a deductible business expense. This can help make the cost of insurance a little more manageable.
How to write it off: Deduct your property insurance on Form 8829.
From fixing a broken fence to repairing a leaky roof, property repairs are a necessary part of running a farm. These costs can be written off as business expenses.
How to write it off: Deduct property repairs on Schedule C, Box 21.
Keeping your farm equipment and property in good shape requires regular repairs and maintenance. These costs can be written off, helping to offset the cost of keeping your farm running smoothly.
How to write it off: Deduct repairs and maintenance on Schedule C, Box 9.
Seeds and plants are the backbone of any farming business. The cost of these items can be written off, helping to make the cost of starting or expanding your farm more affordable.
How to write it off: Deduct seeds and plants on Schedule C, Box 38 (COGS).
If your farming business involves a lot of driving, you may encounter toll roads. The cost of these tolls can be written off as a business expense.
How to write it off: Deduct tolls on Schedule C, Box 27a.
Whether it's driving to a supplier, delivering products, or traveling for a business meeting, transportation costs can be written off. This can help make the cost of running your farm a little more manageable.
How to write it off: Deduct transportation costs on Schedule C, Box 24a.
If you're traveling for business, you can write off your lodging expenses. This can make attending farming conferences or meeting with out-of-town clients more affordable.
How to write it off: Deduct travel lodging on Schedule C, Box 24a.
A vehicle tool kit is a must-have for any farmer. From fixing a flat tire to making minor repairs on the go, a tool kit can be a lifesaver. And the cost? It's a deductible business expense.
How to write it off: Deduct your vehicle tool kit on Schedule C, Box 22.
If you're raising livestock, veterinary costs are a necessary expense. Whether it's for regular check-ups or emergency care, these costs can be written off.
How to write it off: Deduct veterinary costs on Schedule C, Box 17.
Running a farm requires a lot of water, and those water bills can add up. But don't worry, you can write off your water bills. This can help make the cost of running your farm a little more manageable.
How to write it off: Deduct your water bill on Form 8829.
In today's digital age, having a website for your farm is a must. And the cost of that website, including any hosting fees, can be written off as a business expense.
How to write it off: Deduct website and hosting fees on Schedule C, Box 8.
Whether it's for managing your website, ordering supplies, or communicating with clients, having Wi-Fi is a necessity for any modern farm. And the cost of that Wi-Fi? It's a deductible business expense.
How to write it off: Deduct your Wi-Fi bill on Schedule C, Box 25.