Farm Tax Exemption.. surprise, more complex than it sounds!
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- čas přidán 28. 08. 2019
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Real good advice and great examples of tax or non tax exempt items.
You make great points! Our local feed stores put most people on tax exempt. Feed feeds livestock, consumable, tax exempt. Some say there is even hobby farm tax exemptions. BETTER PAY TAXES FIRST, then have your tax man get that money back if you are really exempt. Play it safe.
Generally speaking - Sales tax which is paid on a piece of equipment (the subject of this video) is factored into the basis of the cost of the equipment (capital expenditure ) and is recouped (in part ) by the deprecation of that asset over time. By the way, a chainsaw which is used by a tree farm to cut the trees is not considered to be consumable component of the product - the trees - and therefore would be subject to sales tax. Blades, fuel, oil, and maintance costs for the chainsaw would be sales tax exempt.
Thanks for the info! We are planning to plop urchase a tractor soon and this is a great information! My eyes are now wide open! :-)
Thank you this was very helpful and informative 👍👍
Thank you for some clarification and good information, be cautious, as a business... & maybe consider "risk"(potential tax audit) vs reward (no tax) and what would be the more comfortable play. Again thank you for this. 👍
Unless it is for a lawn are business. Again depending on the state county and local laws. Check your CPA and tax lawyer
I pay no taxes in Texas on anything I buy for my farm, even a chain say....lol.
Good info
We sale Hardwood Lumber retail. Farmers constantly claim they are exempt even though they are buying Walnut.
Depends on the state....
So look up the rules for your state.
I grow trees on my property. Trees give off oxygen, people depend on my oxygen to live. Right? Tax exempt? 🤔🤔🤔😎😎😎
Our property is a stewardship forest so there might be a program out there depending on where you are.
I have a forestry exemption on my property that greatly reduces my effective tax rate. I am still allowed to select cut if needed. The idea is as you say, people need trees. 🌲🌲🌲
@@NichollsSense same for me. My tractor was tax exempt due to the forestry exemption.
I have trees too just for producing O2 and organic leaves in the fall which help the soil nutrients supply the trees that help them produce more O2. It’s a complex business that I purchased with the property... so I should be able to write All of it off. 😃
Nice try
Just buy in NH, no sales tax. Pay through the ying yang for property tax though.
If i buy a tractor to maintain an unmaitained public road should that be tax except?
New Hampshire is one of a few Tax Exempt state.
Funny you being so near to Delaware you don't mention it... no sales tax... and I'm in DE and looking to upgrade tractors...
DE is only tax free to DE residents. Use tax washes out any savings.
@@MessicksEquip Thanks for the quick reply, but still don't get it. DE has no sales tax. If I buy something out of state and something is delivered it's not taxed but if I pick it up I pay sales tax. Does that stand with you and tractors? (or am I still out in left field?)
SOUTH DAKOTA shout out!
Could u give us all a vid on the tier 5 emissions comming down the pipe and how it will affect the lawn n garden side.
nothing in the USA. Its coming to europe though. From what I have heard DPF\DEF engines will require few if any changes.. I don't believe DOC only remains a viable solution.
@@MessicksEquip from what i understand from a trusted friend in the rental industry, he states that in 2020 there will b tier 5 emissions on anything 16 hp and above. He has been at shows across the nation this year and that he has been told this several times from equipment sellers.
In Europe, I believe he is correct. I've yet to see anything for the USA.
@@bpfirehunt0192 unless your friend can cite the exact USA EPA and/or CA ARB (California Air Resource Board) document number that states Tier 5 on these small diesel engines used in offroad equipment is becoming law anytime soon (let alone in 2020), then I am afraid some people are spreading very bad information about this subject (sadly they are likely trying to sell equipment NOW based on fear rather than facts). Like Neil stated in his reply to you, there is nothing currently in law anywhere in the USA that is going to require Tier 5 on these small diesel engines used in offroad equipment. Now Europe is a whole other game and they are about to get hammered.
I tried linking webpages with the current & upcoming regulations for ALL diesel engines, but CZcams is not letting me post them in this comment section. But both the USA EPA and CA ARB websites have lots of info about this topic.
Tax exempt on most things is hard now in Ohio. We take it off taxes. Had a hard time explaining why 9mm bullets were tax exempt.