PatriciaV
Expert Alumni

Business & farm

Most of what you're reading relates to the Home Office Deduction, not the use of your property for a farm.

 

The argument could be made that your orchard is a "hobby farm" since you have little invested in it beyond the cost of upkeep and production.

 

If you stopped using your land for the farm, you would not need to allocate any portion of a future sale to that enterprise. You might have depreciation recapture if the assets are not fully depreciated and included in the property sale.

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