Should I claim farm expenses or wait? Last year had expenses setting up garden & birds wanting to sell veggies and eggs at farmer's market this year. How does it work?

 
PatriciaV
Employee Tax Expert

Deductions & credits

Yes, you may report expenses relating to your farm preparation and livestock maintenance, even if you had no income. These are considered "Startup Costs" and you can expense up to $5,000 in startup costs in the year that your business begins.

However, if you did not consider yourself "open for business" until the next year, you would wait to expense your startup costs on next year's tax return.

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