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mattyyoung143
New Member

I'm purchasing equipment to start a hydroponic farm. How do i file my taxes so i can get money back for starting my business and buying this equipment?

I have the equipment and im  growing samples but i haven't sold anything yet.  And i haven't purchased a business license yet because no one has given me a straight forward answer because its an indoor farm and not a traditional farm.

1 Best answer

Accepted Solutions
Opus 17
Level 15

I'm purchasing equipment to start a hydroponic farm. How do i file my taxes so i can get money back for starting my business and buying this equipment?

You recoup your startup costs in the first year the business actually has revenue to report.  You can deduct up to $5000 of startup costs as expenses, and amounts over that generally have to be amortized over 15 years.  If you won't have revenue in 2017, then you won't have a schedule C on your tax return and you won't report the business.  You will report the business on your 2018 tax return and deal with your startup costs then.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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3 Replies
Critter
Level 15

I'm purchasing equipment to start a hydroponic farm. How do i file my taxes so i can get money back for starting my business and buying this equipment?

Did you incorporate yet or is this simply a sole proprietorship ?
mattyyoung143
New Member

I'm purchasing equipment to start a hydroponic farm. How do i file my taxes so i can get money back for starting my business and buying this equipment?

Sole
Opus 17
Level 15

I'm purchasing equipment to start a hydroponic farm. How do i file my taxes so i can get money back for starting my business and buying this equipment?

You recoup your startup costs in the first year the business actually has revenue to report.  You can deduct up to $5000 of startup costs as expenses, and amounts over that generally have to be amortized over 15 years.  If you won't have revenue in 2017, then you won't have a schedule C on your tax return and you won't report the business.  You will report the business on your 2018 tax return and deal with your startup costs then.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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