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: 391

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

GMO American Chestnuts - will the King of the Eastern Forests return?

Started by Brett Chedzoy in Woodlot Management. Last reply by Brett Chedzoy May 18. 6 Replies

copied over from the: www.silvopasture.ning.com forum...Since I first became obsessed with trees and forests and set out on a path to become a forester ~ 30 years ago, I have dreamed of someday seeing…Continue

Dealing with Climate Change Proactively on YOUR land - Links

Started by Alicia Rose in Forest Health May 4. 0 Replies

Climate Response Frameworkhttp://www.forestadaptation.org/-------------------Northern Institute of Applied Climate Science…Continue

Reading "The Hidden Life of Trees"

Started by David J Vinish II in Forest Health Apr 19. 0 Replies

Reading... The Hidden Life of Trees http://amzn.to/2pDtmGtContinue

Logger Training….It’s Not Just for Loggers

Started by Carl DuPoldt in Woodlot Management. Last reply by Tim Goodman Apr 17. 1 Reply

Logger Training….It’s Not Just for Loggers…Continue

Announcing PA Timber 2017: Forest Products Equipment and Technology Exposition

Started by Carl DuPoldt in Woodlot Management Apr 17. 0 Replies

Announcing PA Timber 2017: Forest Products Equipment and Technology Exposition…Continue

Goldenseal in Your Back Woods?

Started by Carl DuPoldt in Woodlot Management Apr 17. 0 Replies

Goldenseal in Your Back Woods?…Continue

Announcing New Backpack Sprayer Calibration Forest Science Fact Sheet

Started by Carl DuPoldt in Woodlot Management Apr 17. 0 Replies

Announcing New Backpack Sprayer Calibration Forest Science Fact Sheet…Continue

native Plants of New York

Started by Carl DuPoldt in Forest Health Apr 13. 0 Replies

A native plant is one that naturally occurs in a region without having been introduced from elsewhere by people. Over thousands of years, native plants have adapted to the climate, soils, and environmental conditions of our area. They have developed…Continue

Badge

Loading…

© 2017   Created by Peter Smallidge.   Powered by

Badges  |  Report an Issue  |  Terms of Service