Can farm expenses (NOL) be used to offset other income?

[Joe3154]

Hello.

 I retired in August 2022 and have wages/pension income from that year.  I also began farming and had quite a bit of expenses (purchases of tractor and other equipment).  With the farm income only being about $2400 for 2022 tax year, can I use the new farm expenses to reduce my tax liability from the other income?

[tagteam · Accepted solution]

If you materially participate in the operation of a farm, a net loss that creates an NOL can be used to offset all other income.

[Joe3154]

Thank you very much.