It is important to note that the IRS makes a distinction between a production farm and a hobby farm. When a business meets the IRS criteria of a farm the owner may be allowed to deduct farm-related expenses or losses on their annual federal income tax filing. Department of Agriculture defines a farm as “any place from which $1,000 or more of agricultural products were produced and sold or normally would have been sold during the year.”Īccording to the IRS, a business qualifies as a farm “if it is actively cultivating, operating, or managing land for profit.” A farm may produce livestock, poultry, dairy, fish, vegetables, or fruit. Department of Agriculture, the IRS, and the states all have their own definitions of a farm. The definition of a farm varies from entity to entity. Many people wonder what qualifies as a farm in Wisconsin.īefore you can determine whether your property qualifies as a farm, you need to understand the definition of farm. The average farm in Wisconsin has about 221 acres. According to the State of Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP) there are 64,793 farms located on a total of 14.3 million acres. In addition to milk products, Wisconsin is also a top producer of snap beans, cheese, cranberries, ginseng, mink pelts, dry whey for humans, milk goats, and corn for silage. There are many other types of farms located in Wisconsin as well. Wisconsin is often called America’s Dairyland because of the many dairy farms in the state.
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