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  1. #1
    Join Date
    Nov 2007
    Location
    Utah County, Utah, USA
    Posts
    3

    Default Tax credits for "farmers"

    Was wondering if anyone could give me the low down on the options for incorporating one's honey production and the various tax credits for being a "farmer" [of bees].

    Thanks

  2. #2
    Join Date
    Jul 2005
    Location
    Batesburg-Leesville, South Carolina
    Posts
    1,443

    Default

    just wondering why the "quotey" marks around the word farmer....if you produce honey you deserve the full value of the word. Not to see how many angels can dance on the head of a pin, but many folks here who provide pollination for almonds, etc. are certainly deserving of the classification, and probably sideliners too.

  3. #3
    Join Date
    Feb 2008
    Location
    torrington,ct, usa
    Posts
    20

    Default

    Saw this just yesterdat, and might be helpful.
    Planning on building this year, my second b'kpng year, and will utelize this and state info for agriculture.


    http://www.beesource.com/forums/showthread.php?t=217499
    http://www.irs.gov/publications/p225/index.html

    --------------------------------------------------------------------------------
    backerbees

  4. #4
    Join Date
    Apr 2006
    Location
    Indian Valley, Virginia
    Posts
    587

    Default

    there are no tax credits specific for beekeepers...at least at the federal level. every state has their own set of credits but those apply only to state income taxes.

  5. #5
    Join Date
    Nov 2007
    Location
    Utah County, Utah, USA
    Posts
    3

    Default

    Quote Originally Posted by FordGuy View Post
    just wondering why the "quotey" marks around the word farmer....if you produce honey you deserve the full value of the word. Not to see how many angels can dance on the head of a pin, but many folks here who provide pollination for almonds, etc. are certainly deserving of the classification, and probably sideliners too.
    Just wasn't sure if the Feds consider us as farmers.

  6. #6
    Join Date
    Nov 2007
    Location
    Utah County, Utah, USA
    Posts
    3

    Default

    Quote Originally Posted by backer bees/CT View Post
    Saw this just yesterdat, and might be helpful.
    Planning on building this year, my second b'kpng year, and will utelize this and state info for agriculture.


    http://www.beesource.com/forums/showthread.php?t=217499
    http://www.irs.gov/publications/p225/index.html

    --------------------------------------------------------------------------------

    Perfect!
    Thanks, Backer!

  7. #7
    Join Date
    Jun 2006
    Location
    North Carolina
    Posts
    581

    Default

    Quote Originally Posted by Jesse Fisher View Post
    Was wondering if anyone could give me the low down on the options for incorporating one's honey production and the various tax credits for being a "farmer" [of bees].

    Thanks
    You do not have to incorporate to use schedule F on your 1040. You also do not have to own land to be a farmer. You only have to pass the imcome test, which was only $500 in 1970.

    You can incorporate as a C corp. or S corp. You can also avoid liability using an LLC (Limited Liability Corporation). My favorite is the S corp. since you can avoid much of the FICA taxes with a subchaper S corporation. Talk to your CPA if you start making some money in beekeeping.

  8. #8
    Join Date
    Nov 2007
    Location
    Barry, TX USA
    Posts
    862

    Default

    The USDA considers bees to be livestock just like cattle or goats. They ask about them in the farm census form they send out.

    On the state level, here in Texas, we don't have to pay sales tax on items used for agriculture. I'm not sure what Utah's laws are like in this respect.

    A CPA is definitely worth the money he/she charges. My CPA only charged me $300 a year to do my business/personal taxes and he saved me much more than that. I definitely appreciated not having to do that paperwork as well.

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