We are retired and have only SS and retirement related income . Last year I completed a Hazard Fuel Reduction project on our 21 acres (cutting trees and brush to reduce likelihood of forest fire). The agency provided a per acre incentive and I received a check for $6000 after completing the project on my property. I am not a business, just a guy with time and a tractor trying to make my little piece of the forest less likely to be part of a conflagration!
My problems: 1) this is skewing my income tax immensely - it appears to be taxed at a rate of over 30%,
2) I started inputting the information and it lead me down a path of being a business (which I am NOT).
3) I tried to enter the expenses incurred by using my tractor for the project (I tracked the hours and fuel expenses on my spreadsheet). But since a tractor is equipment, not a vehicle, it doesn't really fit in the forms.
TT keeps trying to turn me into a business with amortization of equipment etc...not really what I want to do. I finished all the property so I will never do this again...truly a one time deal
Big Question: Can I take credit for the expenses of using and operating my own tractor, chainsaws to offset some of this income which is being taxed at an exorbitantly high rate. I have about 150 hours of tractor use and over $1300 of fuel and maintenance expenses for this project. I only see that this can be done as a business, which I am not. Thanks for your help.
