Hi, I am a resident of California but I have Farm Rental income from a property our LLC owns in Indiana. (The LLC is a single entity LLC owned only by my wife and me.) There is no other reason for me to pay an income tax to Indiana. Would I be able to claim the Indiana income tax I paid last year as a farm expense this year on my federal return? (I am already deducting the Property Tax on that farm.) Thanks!
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Yes, you can deduct the IN income tax paid on your farm rental income as a "farm expense" on your federal return.
This would come under the same category as business mortgage interest and business property taxes; you don't have to itemize deductions in order to deduct them from your business ("farm rental") income.
Yes, you can deduct the IN income tax paid on your farm rental income as a "farm expense" on your federal return.
This would come under the same category as business mortgage interest and business property taxes; you don't have to itemize deductions in order to deduct them from your business ("farm rental") income.
This is very helpful. Thank you!
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