How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
16356563
Type Your Tax Question Here...
Wallstreet Esq. is online now
A new question is answered every 9 seconds

What if any are the tax benefits from operating as a farmer

Customer Question

What if any are the tax benefits from operating as a farmer in Kentucky(on 10+ acres) versus setting up our operation as a normal LLC
Submitted: 11 months ago.
Category: Tax
Expert:  Mark Taylor replied 11 months ago.

Hi, my name is Mark. I will be happy to help you with your questions.

Customer: replied 11 months ago.
great...would you like some more details or is the question sufficient
Expert:  Mark Taylor replied 11 months ago.

A LLC would offer liability protection. Would you be the only owner of the LLC.

Expert:  Mark Taylor replied 11 months ago.

Sorry the computer was a little slow.

Customer: replied 11 months ago.
No..there are several owners...we are setting up an indoor and outdoor cultivation center where the crop will be harvested and used for R&D as well as wholesale. I know there are property tax breaks for farmers (land over 10acres) but not sure how everything else works out with respects to deductions, breaks etc...that might benefit a working farm better
Expert:  Mark Taylor replied 11 months ago.

I want to make sure I understand your question. As a farmer you would run it as a separate entity?

Expert:  Mark Taylor replied 11 months ago.

Or would you own the land and lease it to the LLC?

Customer: replied 11 months ago.
No sorry...I guess I'm trying to figure out if we would have more tax benefits as an LLC leasing the land and being classified as a farm.....We don't need 10 acres but 10 acres in Kentucky would qualify us as a farm
Expert:  Mark Taylor replied 11 months ago.

Ok now I understand you want to know if purchasing the 10 acres provides tax benefits.

Customer: replied 11 months ago.
by purchasing the 10 acres we can be classified as a farm in Kentucky...will that provide us additional tax breaks, benefits, deductions that we wouldn't necessarily get if we simply bought 5 acres and conducted business as usual
Expert:  Mark Taylor replied 11 months ago.

From a federal tax standpoint it would be the same. You would be entitled to the same deductions.

Expert:  Mark Taylor replied 11 months ago.

There would be no difference in treatment whether you had five acres or ten acres.