MAMalody Posted April 14, 2009 Report Share Posted April 14, 2009 I have a new client with some unusual income streams, at least for a pastor. Apparently they have a business that has been reported as a farm on a Schedule F before. The income stream comes from horse boarding and the selling of horse meat. Is that on a Schedule F? I haven't done a farm in years, thanks for helping this tired brain out. Quote Link to comment Share on other sites More sharing options...
GERALD Posted April 14, 2009 Report Share Posted April 14, 2009 Hopefully, the horse meat is for pet food, not for us!!! You can argue either way for sch C or F- the result will be the same. The horse boarding usually has expenses more commonly associated with farms, i.e. feed, vet costs, mineral supplements, etc. Regardless of whether the horses are raised or purchased, it can still be run through F. It is probably best to run both operations through the same schedule to avoid having to allocate common expenses such as depreciation, utilities, insurance, etc. I tend to favor sch F, but as I said, the result is the same. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 14, 2009 Report Share Posted April 14, 2009 The major difference, other than the names of the pre-listed expenses, is that farm equipment has different depreciation rules. But it sounds to me like a logical choice to use, since raising livestock for sale is clearly in the 'farming' category. Why would you have a problem with that? Quote Link to comment Share on other sites More sharing options...
RitaB Posted April 14, 2009 Report Share Posted April 14, 2009 The major difference, other than the names of the pre-listed expenses, is that farm equipment has different depreciation rules. But it sounds to me like a logical choice to use, since raising livestock for sale is clearly in the 'farming' category. Why would you have a problem with that? I looked briefly at Pub 225, cause I thought it used to say something about a farm is a business that produces a commodity for sale. I must be crazy, cause it's not there now. Anyhow, I don't know if pet food (boy, I hope it's pet food) would fit that definition. Maybe a "commodity" is not even food for humans, shoot, I don't know. But, hey, since I'm apparently losing my mind about where I saw that, and it's April 14, and it won't matter in the long run, I'd go with Sch F, too. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 14, 2009 Report Share Posted April 14, 2009 Boarding horses and selling horse meat. Your client is really hard on boarders who fall behind on their rents?! Quote Link to comment Share on other sites More sharing options...
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