You'll need to sign in or create an account to connect with an expert.
As a hobby farm, you can deduct your expenses (up to your gross income) on schedule A, if you itemize.
Your only other option is to operate a for-profit farm business and file a schedule F but the requirements are you must make a profit at least 3 out of 5 years with the full intent to profit annually and have a reasonable potential to do so. Otherwise the IRS may claim your previous business years as a personal use hobby, which could create an unexpected large tax liability.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.