Help!!!... Tax help...

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Miniequine

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[SIZE=10pt]I plan to file as a FARM, file schedule "F" this year.[/SIZE]

Any major do' and don'ts???

ANY tips would be greatly appreciated!! :new_shocked:
 
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kaykay

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if this is your first time it will be a little overwhelming. just be sure you have all your papers in front of you. Youll need the date of every horse you bought and the amount. Youll need all your exspenses that can be depreciated in one pile (such as a tractor or trailer) and then you other exspenses in another pile (hay, vet farrier, advertising, web site) Also if you sold any horses you need that amount and the dates of sales.

After the first year it gets much easier as my program brings up last year and keeps depreciating the horses for 7 years.
 

wcr

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The biggest tip I can give is find a good accountant. Well worth the time and hassle and they will do a much better job of having it all in order. Costs me under $200 and saved me thousands in taxes.
 

wwminis

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[SIZE=18pt]Sandy, :saludando: [/SIZE]

Also, depending on when you started your farm, you can file ammended taxes for the past 4 years on your farm! You would probably get back all the taxes you've payed in for the last few years by going back and filing on the farm! :aktion033: H & R Block is one of the best I've seen on doing farm taxes!

Bill
 

alphahorses

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I use H&R Block as well and they have great to work with ... but if I had to do it all over again, I would go to an accountant that specializes in agricultural accounts - at least the first time to get advice and education on tax laws.

PS .. The headshot in your avatar is gorgeous!
 

Lewella

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Hire an accountant familiar with farm taxes. You can deduct the cost of paying him to prepare the return for you this year on next year's taxes. I also like the security of knowing if I were to ever be audited I have my tax accountant to handle it for me.
 

Southern_Heart

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Like WCR said get yourself a good farm accountant, I would be lost with out mine. :new_shocked: He will ask you all the right questions and you will save thousands! Having had my accountant for along time I just mail him all the info and he does the rest. Sure takes the hassel out of income taxes.
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Joyce
 
K

kaykay

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I will say this. the first year I went to H&R block to have mine done. The woman was clueless!! It cost me 250.00 and I had to tell her how to do most of it. She used the exact same program to do it that you can get online for free. Now i used the online computer program and I do take out the ins so that if I did anything wrong I am covered and Turbo Tax will pay any penalties. Even after paying the ins its cheaper then going into the office and to me its easier. But for sure if you have no exp doing taxes pay someone to do it but I would stay away from H&R block

Kay
 

Marty

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Don't no nothin about no taxation

but I saw you here so Merry Beth is sending you a big kiss today........cause we love you Sandy
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Viki

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I love my tax man! Costs me about $200 and worth every cent! I make a spreadsheet I take to him, he does the rest. It's wonderful!!!!!

Viki
 

Jean_B

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Ditto on the comment about getting a good tax accountant that knows farm tax law. If you are not sure who does, go talk to a couple successful farmers in your area (doesn't matter if they are horse or cattle farms) and see who they use and whether or not they are happy with them. I've been working with one back in WI for YEARS and I just dropped all my documentation in the mail to him...WELL worth the money!! Saved me LOTS in taxes over the years. And I don't want to start over down here with someone who doesn't have all my depreciation schedules etc.
 
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coopermini

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If you do not have exp as far as doing your own taxes the past several years than definately get a accountant WITH farm tax exp. Here we have been using TAXCUT for several years and it is quite easy if you know what you need for info ahead of time. If you keep good financial records it is not hard only takes time to input.

We have other farmer friends that hired a farm tax guy then they started to use TAXCUT and then sent that completed to him. After 2 years he told them his work and their program came out exact both times. He said thanks for your past business but you don't need me anymore>
 

Driving4fun

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We're thinking of filing farm this year also and I was wondering if you have to show a profit.
 

Dona

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I agree with everyone who is telling you to find a good accountant experienced in filing for farms!
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: No matter how much you "think" you know about taxes....the laws are continuously changing. It's almost impossible to keep up unless you work in it every day. I worked in accounting almost my entire adult life up until a few years ago...and even I won't do my own taxes.
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I DO keep ALL receipts & a ledger (spreadsheet) of all expenses. All I do is copy the final page (with all the totals) and give to our accountant. He does the rest....very well, and has saved us a LOT over the years! :bgrin

Forgot to add one thing. Make a "Business Plan" in writing & copy it. In it...put what your goals are & how you plan to achieve those goals. Put down what experience you have & any seminars or classes you have taken that will help you to do this. Update this each year as well. If you are ever audited...this will lend "credibility" to your "business"....and show that you are serious about your horses as a business, not just a hobby.
 
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faithfarm

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We're thinking of filing farm this year also and I was wondering if you have to show a profit.
You should show a profit 2 out of 7 years. There is a little leeway, in that you must show the intent to make a profit; showing, advertising, and horse related income. A good tax accountant can guide you through the requirements and knows the deductions that most don't know about. Something to think about: if you buy a horse, depreciate it over 7 years and then sell it, any money is profit. I'm not an expert on this but my taxman is.
 

Miniequine

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[SIZE=12pt]Thank You guys for taking he time[/SIZE]

to give your thoughts! :bgrin

I did my return yesterday... I will print it and

take it to an accountant.

I am amazed how much it helps!! :aktion033:

Sandy
 

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