Hobby farming - tax issues / audits

mercredi 5 avril 2017

So my tax lady is telling me that losing a small amount each year is going to flag an audit eventually... I've never been audited.  I have a good job in town and pay PLENTY in taxes (don't we all!)   Anyway, between diesel, twine, repairs and such I lose a few thousand each year. (gross sales on 10 acres of hay, a little bit of custom work and a few meat goats for 4H projects is around $6-8K.)    So I told her, OK that's fine...  I will simply have her do my taxes like I don't farm... I won't claim any losses or profit, just keep it all "under the table" so to speak.  She says "well, you can't do that!!!!"  So what the hell do I do?  Keep doing what I'm doing (I keep every receipt as proof if I ever do get audited) or just treat my little operation like most folks do a garage sale or lemonade stand?   I know there are a lot of part-time / hobby guys on here like me, I'd like to see what you all do.  Thanks



Hobby farming - tax issues / audits

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