What every farmer should know about income tax.
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What every farmer should know about income tax.

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Published by Legal and Financial Publishing Co. in Cape Town .
Written in English

Subjects:

Places:

  • South Africa.

Subjects:

  • Income tax -- Law and legislation -- South Africa,
  • Agriculture -- Taxation -- Law and legislation -- South Africa

Book details:

Classifications
LC ClassificationsLAW
The Physical Object
Pagination[vi], 125 p.
Number of Pages125
ID Numbers
Open LibraryOL5718842M
LC Control Number70385624

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Total farm miles for the year (Actual, not an estimate) YOU NEED TO KEEP EVIDENCE TO SUPPORT YOUR MILEAGE IN CASE OF AUDIT (LOG BOOK, CALENDAR) You are also required to give proof of any self-employment income, even if you did not make a profit (your tax preparer will discuss deductible expenses with you).   Although you may think you know this answer, the IRS may disagree with your assessment. The IRS doesn’t have a single standard definition of farming for all tax purposes, but here is one definition, from their tax tips, “Ten Things to Know about Farm Income and Deductions:” “Farms include plantations, ranches, ranges and orchards. Better Farm Accounting has been an agricultural institution since its initial publication in This inexpensive, easy-to-use book has served as a practical aid to agricultural producers for generations. The new edition will include updated headings for income and expenses and information will be reorganized to make this edition even more s: A primary goal of tax management is to avoid wide fluctuations in annual income in order to avoid swings in marginal tax rates. Farmers who use cash-basis accounting can manage their tax liability by shifting income away from the high-income years and deductions away from low-income years.

If more than two-thirds of an individual's gross income is from farming in the current or prior year, then the qualifying farmer is allowed to make a single estimated tax payment by the fifteenth of the month following the close of the tax year, or pay the full income tax liability by the first of the third month following the close of the tax year. While Schedule C is often employed to record non-farm-related declarations, a small farmer can use this schedule to seek tax breaks for expenses associated with consultants, laborers. The federal income tax withholding tables are now included in Pub. T, Federal Income Tax Withholding Methods. See chapter New Form NEC. There is a new Form NEC to report nonemployee compensation paid in The Form NEC will be due February 1, Canadian Farm Business Facts. There are a lot of different farm tax breaks that Canadian farmers can take advantage of. The Canadian government provides farmers with programs like AgriStability and AgriInvest, that help protect their operations from a drop in income. On top of that, Canadian farmers can deduct all of the usual business expenses.

Generally, a farmer includes an amount in income for the tax year in which all events that fix his/her right to receive the income have occurred, and s/he can determine the amount with reasonable accuracy. Income tax returns will need to be filed for your small farm. You will want to keep detailed track of expenses and income for the IRS, to ensure that you are paying the proper taxes for your farm. Consult an accountant for details specific to your situation, but tracking income and expenses is a must for any farm. Paying self-employment tax; Your farm income might fall below a certain level. If so, you can use an alternate method to figure self-employment tax. Since it’s difficult to predict farm income, the estimated tax rules are different for farmers. To learn more, see Publication Farmer’s Tax Guide at .   This book is an excellent place to start if you don’t know the first thing about taxes. This isn't a mere laundry list of what you are eligible to deduct—it also teaches you how the law has recently evolved, which types of income are never taxed, how to claim things correctly, and how to read your financial records as a seasoned accountant would.