We have a small cattle farm in texas, stand alone it would be profitable only a couple years in 5, so we restored the historic farmhouse and now rent it out as a farm vacation stay. "famication" as an experience. People who stay get to interact with farming feed cows, cuddle, bottle the babies. Hike the trails, fix fences etc. To try to make it a profitable business year on year.
Its all under one farm agricultural mortgage, and agricultural exemptions and 1 farm insurance. The farm house is 100% used for rentals , we have our own residence on a separate mortgage/title.
Do i treat the farm house rental income as "farm rental income" or as "rental property income"
@LHickeyTexas wrote:
....To try to make it a profitable business year on year.
The facts you presented certainly make the operation appear to be a business (as in a resort) as opposed to a farming operation. As such, this enterprise may be required to report on Schedule C.
I would suggest that you seek a consultation with a local tax professional.
@LHickeyTexas wrote:
....To try to make it a profitable business year on year.
The facts you presented certainly make the operation appear to be a business (as in a resort) as opposed to a farming operation. As such, this enterprise may be required to report on Schedule C.
I would suggest that you seek a consultation with a local tax professional.
I hadnt thought of that, lumping it all in with our LLC for barn weddings. generating a schedule K. Bit of work doing the data entry for assets from turbo tax personal farming over to business desk top turbo tax...
Who is "we" in terms of the LLC members?
Since you are apparently in Texas, a community property state, you could file two Schedules C if the only members of the LLC are you and your spouse (i.e., you would not have to file an entity return, such as a Form 1065 and associated K-1s).
Again, I strongly urge you to seek guidance from a local tax (and legal) professional.