- Mar 26, 2013
- Reaction score
- NE Ohio
It didn't put me in a higher bracket, so I didn't overpay.You braught up an interesting point that I was also pondering. Since TOR's Australian tax code is quite different in some respects ( ? ) to the US one , I called the IRS to ask. A IRS Auditor just returned my call. So , here it is the current official word ! The code states that an animal or produce that you raise and then consume yourself and family only, you just remove it from your inventory and you DO NOT DEDUCT ANY EXPENSES FOR IT'S PRODUCTION OR ADD IT'S VALUE TO YOUR INCOME. Same goes for a hobby farm. So Norse, sorry but you overpaid on your farm income taxes. That is if the price difference put you into a higher tax bracket.
For me, it's much easier to add the value of the animal kept for my own use, than to try and deduct the fraction that animal cost in each of the expense categories I track. It also bumps up my 'gross farm income', which is a factor in my area for qualifying for 'farm' property tax rates, since I don't have the minimum required acreage.