Discussion:When has the fat lady sung?
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Discussion Forum Index --> Basic Tax Questions --> When has the fat lady sung?
Discussion Forum Index --> Tax Questions --> When has the fat lady sung?
| 25 March 2009 | |
| I've tried the yellow box but just can't seem to get the right key words. I have a couple of clients (farmers) who are at the end of the business cycle, the trees have been pulled and for a year or maybe two there are residual expenses of the good old farming days, but when is enough enough - as far as deducting expenses relating to the farm goes? The county requires some maintenance due to pests, there might be some minor income from non-qualified pat divs and these can go on for 7 years, but the irrigation and maintenance expenses are much larger than that income (although they would still be getting non-taxable retain payments). They may have the land for sale, or sometimes not yet (depends on where they live in relation to the farm land). I'm struggling with "profit motive" but then the motivation was in the past.
Any thoughts? | |
| 25 March 2009 | |
| I think land maintenance is not farming. I would say if profit motive (or the willingness to produce income from the land mindful some farmers make very little) is gone, Broonhilda has left the reservation. | |
RoyDaleOne (talk|edits) said: | 25 March 2009 |
| The profit motive is not loss if the business is winding down and closing. The costs to completely close a business are deductible. | |
| 25 March 2009 | |
| But what is a reasonable amount of time to close down? Until the land sells, the equipment? - This can take years.... | |
RoyDaleOne (talk|edits) said: | 25 March 2009 |
| I know this will sound bad, however, that amount of time that is necessary to dispose of the assets. "Dandy Don" | |
| 26 March 2009 | |
| I always manage to get a good laugh reading "tax stuff". Heheehehe | |
RoyDaleOne (talk|edits) said: | 27 March 2009 |
| Monday night football Howard Cossell and who? Actually two whos.
But: | |
Taxestaxes (talk|edits) said: | 27 March 2009 |
| Thanks Apple, you brought up a good point for me as well....I have struggled with this over the past couple of years, esp. with the tobacco buyout taken place.....farmers are no longer farming, but they have this income every year from the buyout and they want to keep taking the deductions for maintaining the land and upkeep.....thats fine to a point....I have tried every year to wean them from this, but its hard to break them.....I tell them the IRS is looking at this as a hobby or not for profit plan, but they dont care...I have actually lost a couple of clients this year, because I questioned the $12000 expense vs the $200 dividend from Southern States!! | |
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