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Arlinas
New Member

Can you deduct property taxes and insurance premiums as farm expenses if farm is now a second home?

 
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jerry2000
Alumni

Can you deduct property taxes and insurance premiums as farm expenses if farm is now a second home?

If the farm is now a second home instead of a farm, then it is not a farm and you can't deduct farm expenses. You would deduct property taxes as real estate property taxes on Schedule A and insurance premiums are not deductible. You can't have it both ways. It either is a farm and you deduct farm expenses, or it is a second home and you deduct as a second home, not a farm.

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4 Replies
jerry2000
Alumni

Can you deduct property taxes and insurance premiums as farm expenses if farm is now a second home?

If the farm is now a second home instead of a farm, then it is not a farm and you can't deduct farm expenses. You would deduct property taxes as real estate property taxes on Schedule A and insurance premiums are not deductible. You can't have it both ways. It either is a farm and you deduct farm expenses, or it is a second home and you deduct as a second home, not a farm.

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Arlinas
New Member

Can you deduct property taxes and insurance premiums as farm expenses if farm is now a second home?

Thank you, jerry2000.  We are counting it as a farm because we had income from our hay crop.  After reading your reply, I realized the Insurance was referring to crop insurance and not home insurance.  I hope, you don't think this is dumb question....is the property tax considered a farm expense and reported on the line for "Farm Expenses---Taxes" on Schedule F?   Thanks again for your help.
jerry2000
Alumni

Can you deduct property taxes and insurance premiums as farm expenses if farm is now a second home?

You still have to decide whether it is a farm or a second home. If a farm, then you deduct real estate property tax as a farm expense on Schedule F. If it is a second home, then it is personal use property and you deduct the real estate property tax on Schedule A, as a tax on a second home.
Arlinas
New Member

Can you deduct property taxes and insurance premiums as farm expenses if farm is now a second home?

Thank you that makes perfect sense.  You have been most helpful.  Thanks.
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