When the IRS considers your farm a hobby

Name: When the IRS considers your farm a hobby
Duration: 53 s
Description: If farm expenses far exceed income from eggs or hay sales, the IRS may classify it as a hobby and disallow deductions.

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Got a farm that brings in $1,000 selling eggs or Christmas wreaths but claims $20,000 in tractor and depreciation expenses? That's the kind of imbalance that catches IRS attention. TJ explains what separates a legitimate farming operation from a hobby in their eyes and why the ratio of income to deductions matters.

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