New business and purchasing equipment

[mcbc]

We purchased 10+ acres of land in 2022, and are building our new home on it and starting a new small farming business.  We are buying a few pieces of equipment for the new business before the end of this year.  A couple of questions about our situation:

1) Should we set up a single-member LLC for the new farming business?

(Our main income is W-2 for my job, and 1099 for my husband.  He files Schedule C and has business expenses.)   Will we have to file a separate Schedule C for our new farming business?

2) How much of the cost of the equipment will we be allowed to deduct or depreciate in 2022?  (We will have zero income in 2022 for the new business.)

Thank you!

[Kelly Thomas C]

1) an LLC for your farming enterprise is a good idea. For risk management, ownership liquidity and other reasons, it's worthy of consideration.

2) You will want to have your farming business on Schedule F and your non-farming business on Schedule C.

3) I don't have enough facts to consider to answer your question accurately and completly. I will send you this link to read up on this.

https://turbotax.intuit.com/tax-tips/small-business-taxes/depreciation-of-business-assets/L4OStLQEL

I hope this was helpful to you.

Kelly C.

CPA