How We Save Money ($1000+) On Taxes By Farming

DISCLAIMER: I am not an accountant. I am not YOUR accountant. Get your own accountant to help you make tax decisions. This video is just to explain to you how WE save money each year, not to tell you how to do it.

One of the benefits to taking the leap from a homestead to an actual farm business is that you generally will be able to take advantage of some tax breaks.

In our state of CT, farmers get a few different tax cuts that we take advantage of. In this video we discuss 2 ways we save over $1000 every year on our tax bill because of farming.

FIRST.. We are exempt from the 6% Sales tax CT has when purchasing farm goods (feed, supplies, materials, etc). We spend a lot of money on feed, building materials, and animals supplies, so this little 6% tax savings adds up to hundreds of dollars every year!

Second... We save on our property tax through the PA 490 program.
Every acre you own is generally taxed through your state property tax program. Farmers generally get a discount on what they pay per acre owned for their properties.

If your thinking about starting your own farm business, be sure to contact an accountant to help you know where to look for tax breaks for your own farm business. The more money you get to keep in your wallet, the more you can spend on new animals and barns!

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[ArmsFamilyHomestead]

Here in Oklahoma our farm exemption really helps us on our taxes every year! We save lots of money having a farm exemption.

[mindbreaker]

I always buy a bottle of Jack Daniels before starting my taxes.

[NobleHomestead]

You have amazing timing! Just this week, I went out to our local Cornell Cooperative Extension for a class on "Farming as a Business, " and my wheels started turning more towards farming than homesteading. Thanks for your honest, simply-disseminated info. We are currently searching for properties here in NY. Our tax-break requirements are a bit more stringent, but still doable. If you have 7 acres or less tillable, you would need to do $50, 000 for the break, more than 7, $10, 000. That way they keep the hobbyists from acquiring the breaks. Next week I attend a Farm Law class. Videos like yours are great guidance.

[kkschickensandhomestead]

I live in PA and my county also has a homestead break on property taxes. Worth checking into for those who don't qualify as a farm.

[cheriharr]

I've viewed several homestead videos. I really like your truthful & informative videos that are to the point.

[breezyridgeranch]

I shared this video with some family friends who are full time farmers. Everyone can appreciate gettin more if there hard earned money back.

[maggiehodge]

Your missing the biggest tax savings of all. If you itemize, everything you buy is a business expense and is subtracted from your income. So if you spend $1000 on feed you save 6% sales tax ($60) at the point of purchase but you also save the receipt and write it off at your tax bracket at the end of the year. I am 25% tax bracket so I would get $250 in my tax refund or pay $250 less. You have to itemize so not everyone can do it, but if you are a legitimate business your going to anyway.

[gunnysgarage]

GREAT info!  This will be very helpful as we are just starting out.  Sharing with my wife now!

[purple_leaf]

thank you so much!! We've been trying to get tax exempt for our farm supplies this yr.

[jts]

you are the person that I Like, take the money legally from them!

[newprepper]

love all your content shared this on on twitter. your really helping me plan for my future with all the info. thanks.

[mariahc.crawley]

That Boys II Men video meme was
SUBSCRIBED!

[copperhousefarm]

Great videos. Embrace the paper work! Think of paper work in a different way, think of paper work as money.

[NoBudgetHomestead]

Great Video! Very informative and gave me a few things to think about !! God Bless!

[southerntexashomestead]

Thanks for the insight on what type of exemptions are available for farmers in your area. I purchased land in Texas and found that I could get a homestead exemption which helped reduce property taxes a little. Unfortunately I only have 4.927 acres of the needed 5 acres to qualify for farm exemption stasis with my 6 beehives, poultry and goats. I also was informed that the physical foot print of the residence's square footage is deducted from the total number of acres leaving me with even less acres . I have worked extremely hard to produce a healthy, rotational grazing, organic, self sustainable ecosystem to provide quality products for my community and produce an income for myself where I can reinvest back into the land and infrastructure. How sad that I must struggle and do not qualify for the benefit of farm exemptions, when big industry and corporate businesses get them instead.

[anissam]

I plan on having property with plenty of livestock. This was very helpful thank you so much!!

[PondRiverFarm]

nice video....we signed up for the sales tax exemption early on but didn't know about the property tax deduction -- I'll check with my county to see if that is available to us, thanks!

[RussellBallestrini]

Hey just found your channel and subscribed! I'm also in Connecticut!

[kotomszczanka]

We saved over $1000 in property taxes with less then 10 acres. Just ask for inspection and you can be Agricultural Certified if you have enough animals in FL. Sales tax exemptions saved us hundreds, movers, fencing etc, It all adds up.
I so wish our feed bill was $4000, yeah, it's 4 times as much :(

How do you keep all your receipts, digital, paper form or both?

[ivahill]

really good info thanks shared this one on facebook