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Level 1
posted Mar 16, 2020 6:16:08 AM

I am a self employed physician assistant. I have a 37 acre farm. Can I use farm loss to offset my medical income. For example I want to build an $8000 fence around a pasture. I will not make more than

this on the farm. Can I use the farm loss to lessen my overall income?

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6 Replies
Expert Alumni
Mar 16, 2020 6:36:43 AM

Yes, if the farm is actively worked and you have a loss on from the farm, the loss will offset against your income from being a physician assistant.  The loss will not reduce the Social Security and Medicare tax you have to pay, only the Federal tax you have to pay.

Level 1
Mar 16, 2020 7:30:26 AM

Thank you! Now since I have a farm and home office and am self employed, is travel to and from the self employed worksite tax deductible?

Expert Alumni
Mar 16, 2020 7:37:14 AM

Yes, self-employed business mileage is deductible. Mileage is an allowable deduction if you’re self-employed or own your own business. You can choose between the standard mileage rate or the actual cost method where you keep track of what you paid for gas and maintenance.

To use the standard mileage rate, you must keep a log of each trip with miles driven during the first year your vehicle is used for business. After that, you can either go with standard mileage or actual cost (unless you lease, in which case you must stick with standard mileage for the duration of the lease).

Level 1
Mar 16, 2020 8:34:25 AM

Thank you again! Now if I have a farm business and home office for this and worked as a W2 employee, is mileage from the farm to the W2 job tax deductible? I would be doing farm work before and after the W2 job in this scenario. 

Expert Alumni
Mar 16, 2020 8:45:59 AM

You can only have one principal place of business. This chart might make it easier for you.

 

 

 

New Member
Nov 8, 2020 10:23:18 AM

Hello, I am in similar position.  I am in insurance business and have an orchard as well.  I have had schedule F losses every year since including schedule F in my return.  Should this be a concern?  Thank you