In 2015 we converted our maple syrup hobby into a small business.  This is the first year we have to file our taxes related to the business and are not certain if we should consider it farming or retail sales (schedule F or schedule C) or what the standard business code is that we should use.  We own our own woodlot (38 acres) and do not purchase any other sap at this time.  We contacted the NYS sales tax division and they said we do not need a sales tax number because we do not collect sales tax on our sales.  We are very small scale but hope to slowly expand.  Can anybody offer advice, or pointers on where to find the answers?  Please do not say a tax professional because I already work with them, and the ones I have asked do not really know which approach to use. They know all about preparing returns but not specifics on maple syrup production.  Thanks very much for any help.

Views: 828

Reply to This

Replies to This Discussion

Wendy, Generally it is to your advantage to be considered a farm for tax purposes.  The main reason is that with a schedule F using the cash method you do not have to account for either supplies or product inventory.  Doing such inventory can be a lot of work, how to value the inventory can be a problem and inventory will be considered part of your profit for tax purposes even when you have not received any real income from it yet.  If you wish to apply for ag value assessment on your sugarbush they want to see a proof of farm income.  Schedule F instructions are probably your best resource for working through the process.  I don't know of any maple specific instructions.  Setting up your chart of accounts to somewhat match the income and expense lines in the schedule F can also make the figuring taxes less frustrating.  thank you.  Steve

Thanks Steve.  I will definitely look into doing it that way.  I appreciate your response.  Wendy

Wendy,

You may find it helpful to take a look at publication 225 Farmer's Tax Guide.  My guess is that your business fits the definition of farming.  Farmers get a lot of breaks that other business' do not get.  Here is a link to the pub - 

https://www.irs.gov/pub/irs-pdf/p225.pdf

RSS

Forum

480a disqualification after EAB

Started by Bill Pontius in Woodlot Management Jan 4. 0 Replies

Here's a hypothetical question (hopefully). If an ash stand no longer has sufficient density to qualify for the 480a program following ash borer invasion, and if that stand is necessary for having more than 50 acres for the program, what happens?…Continue

controlling beech

Started by robert dalbo in Woodlot Management. Last reply by robert dalbo Dec 11, 2018. 2 Replies

I have a section on my property approximately 5 acres with mature oak and maples 18 to 20 inches, well spaced, but the understory is a combination of beech and ferns. I have cut some beech and sprayed some the ferns with mediocre success. I do not…Continue

New film & resources to help YOU save forests!

Started by Lew Ward in Woodlot Management Nov 19, 2018. 0 Replies

'New film & resources to help YOU save forests!A new, short, animated (and…Continue

Tags: Management, Growth, Old

IPhone surveys

Started by Jim Martin in Woodlot Management. Last reply by Jim Martin Oct 27, 2018. 2 Replies

Smart phones have GPS.  Has anyone figured out how to use them for mapping wooded land.  I am especially interested in a way to map  my logging trails. Jim MartinContinue

Oldest Flowering Tree in North Americal

Started by Carl DuPoldt in Forest Health Oct 2, 2018. 0 Replies

Fossil of Oldest Flowering Tree in North America Discovered. And It Was Huge. -- https://www.livescience.com/63719-flowering-tree-fossil-cretaceous.htmlContinue

Slash and squirt control of Ailanthus

Started by Mark Horberg in Woodlot Management. Last reply by Peter Smallidge Sep 23, 2018. 5 Replies

I have 20-30 ailanthus trees on my property in the 4-6 inch diameter range.  What specific herbicide and concentration should I use for slash and squirt?  Can you recommend a place where it can be purchased in small quantities?  Thanks. Continue

Badge

Loading…

© 2019   Created by Peter Smallidge.   Powered by

Badges  |  Report an Issue  |  Terms of Service