Tax Question

[ultrarunner]

Sounds like it will be awhile then.

It’s been months between letters and my immediate reply.

If a garnishment happens I understand taxpayer can escalate to a resolution officer.

 

[ultrarunner]

Maybe a light at the end?

Received notice of eminent levy or lien.

With notice in hand I was able to escalate to a problem resolution officer and a real person.

I didn't say much during the 20 minute exchange and it's the first time after calls, letters and faxes I had reached someone able to delve deep

In a nutshell it was explained that my documenting including cancelled checks was received and is pending review but the review process has months of backlog.

The person said my submission was complete and once verified would show no tax due and I was granted a 60 day extension.

I'm thankful for being able to finally reach someone able to help!

I can only imagine if I had not been repeatedly Johny on the spot or away or unable to comprehend the problem would have a life if its own...

Appreciate the advice here as I never have been in this kind of situation.

 

[ConawayFarms]

I'm not a CPA, but I'm a small farmer in CA and I went through the same “hobby loss” anxiety. In short: loss years are not automatically a problem; the issue is when you can’t objectively demonstrate that you’re pursuing profit. In my case, Tax Law Advocates emphasized: (1) keeping strict records of every income/expense, (2) making real changes after weak years (e.g., varieties, density, replanting schedule), (3) having written discussions with the contractor about optimizations. After I did all that, even on the second negative year I didn’t get any further questions.

 

[ultrarunner]

The Christmas Tree Farm had official audit and when all said and done ok.

The property has had Christmas Trees for decades but when the owner passed away no new seedlings planted.

When brother bought the place he had lots of catching up to do… planting, irrigation, soil amendments… fences/gates, sellers permit…

It all came together nicely and he employs a lot of local kids that often hand down the job to the next younger sibling…

It takes about 7 years to get a typical Christmas Tree here…

Brother had impeccable records plus a Lawyer/CPA on retainer… to cross the T’s and dot the I’s…

 

[gegawo]

I've had modest net income from my apple orchard, until recently when insurance cost tripled along with two years of bad weather and low production.

My role in the orchard is to backhoe out the stumps of trees that fell, to prepare for replacements. Then water and maintain new trees until they become productive at about the fifth year. Then responsibility shifts to the contractor who does 90% of the work here - prune, till, spray, harvest, market. Each year he provides me check and a 1099. So I'm visible to IRS.

This was fine so long as I ended the year with net income. Now, this is the second year with a net loss after insurance, taxes, minimal cost for diesel and welding supplies, etc. Building and tractors were fully depreciated long ago so that isn't an issue.

How long can I file a net loss that reduces overall family taxable income? Sooner or later I'll hit some big expense - broken tractor, re-roof the equipment barn, whatever. Am I at risk of being declared a non-deductible hobby? Do some farms operate at a net loss for years and years?

I’m currently exploring options for an apartment for sale in Athens East and would love some advice from people familiar with the area. I’m looking for a place that is well-connected to public transport, safe, and close to shops and restaurants. Any recent listings or trusted agents you can recommend would be really helpful. I’m also interested in understanding the typical price ranges and neighborhood vibes. Tips on negotiating or things to watch out for in Athens East would be greatly appreciated. Overall, any guidance on finding a good apartment there would mean a lot.

ChatGPT said: You can continue filing net losses as long as your orchard is run with a genuine profit motive and in a businesslike manner. The IRS looks for a profit in three of five years to presume it’s a business, but even with losses beyond that, thorough records and proof of intent generally allow deductions. Farms often operate at a loss for years, especially during startup or tough seasons, but maintaining documentation is key to avoiding a hobby classification.