IRS Schedule-F questions

[paulsharvey]

I never saw where it had to be profitable on start up years. My accountant suggested an LLC and just jump in. That’s what I did and here I am decades later. I have never lost money and don’t *think* I will in the future loss of health or some other unforeseen calamity (war, change in policy, etc.)

Your operation sounds smallish if you plan to stay that size. I would suggest finding a customer or 2 and raising more head on their land, or growing crops on other land to have the appearance of a growing operation. Seems to me the guys that get caught are the ones with a few cows in the back yard looking for a tax loophole.

So, I would really like to reach the requirements of FLa to be a Bona Fide ag property, for property tax reasons, as well as other things, such as not needing building permits. The county said min 6 head, which ok, eventual I can get to that point. What threw me was the county said they want the Sch F, or atleast all of the info from it. Don't get me wrong, saving federal income tax would be nice, but that's not the intent. Making a living on a 10-12 acre cattle operation is also obviously not the goal either.

Now, on the plus side; the detailed records needed for Sch F is probably something I should do anyways. Even if it's just a way of seeing how much you are actually spending, $100 at a time.

At 6 head, (per county), you are in a really weird spot. That's not personal consumption, but even on a Perfect year, the max potential gross revenue would likely be $2400/year, and it would take a very tight ship to bring in $1000 net.

 

[Hay Dude]

Yes it would. I can tell you a 1/2 dozen head after expenses is chump change.