Discussion Archives:For the Farmers

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Discussion Forum Index --> Advanced Tax Questions --> For the Farmers


Discussion Forum Index --> Tax Questions --> For the Farmers

Newtaxguy2008 (talk|edits) said:

11 March 2009
I have a couple questions regarding a farm return and I hope one of you can point me in the right direction.

1. Where are business related meals deductible on schedule F? I don’t see a spot to claim meal expenses on Schedule F, but it should be deductible.

2. My client’s first year in business was in 2008, but purchased the goats and some goat supplies in 2007. Nothing was filed in 2007. Can the taxpayer include vet/medicine costs and feed costs paid in 2007 as startup costs amortized over the next 5 years? What I’ve found on the IRS’s website on startup costs is pretty vague. I am imagining the taxpayer can claim these expenses, but just wanted to double check.

3. I may be overlooking it, but what is the class life for depreciating hand tools used on the farm? I thought it was 5 years, but looking over the class table in pub 946 I can’t seem to find the class. I am depreciating it rather than expensing it since the client had major losses during the first year and not much income, so I am spreading it out over the next several years.

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