I am starting a Christmas tree farm. This year I spent money on land, clearing, seedlings, planting and spraying. I want to purchase a utility vehicle also. Question: How do I write off these costs? ( I have other income)
Is there any advantage to establishing the Christmas tree farm as a formal business?
As per generally accepted accounting policies, all revenue nature expenses (planting curing, seedling etc.) will go to profit and loss account and utility vehicle will be your asset and depreciation of that asset will hit your profit and loss account every year.
Please note the answer is not as per US law. It is as per generally accepted accounting policies.
What IRS tax forms are used for a "profit and loss account"?
Expenses of revenue nature should be written off where as expenses of capital nature shall be recognized as assets (land, utility vehicle) as per the GAAPs.
Sorry, we deal in Indian taxation. Hope other experts may help you out.
You have to prepare your books of account and File your income tax return of current year on or before due date of filling Itr then you can carry forward current year loss which can reduce your coming year(s) tax on income
Sorry, but we can guide you according to the Indian laws only.
Hi,
I'm sorry, but this website is for Indian Income tax law. We would not be able to advise you on US Tax laws.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hello Sir,
I assume your query is regarding taxation in the USA but the experts on this portal answer queries relation to the taxation act prevalent in India.
I apologize for the inconvenience caused to you.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
sorry dont know
Sorry. I am not an expert in US Taxation. I would leave it to other experts on the Forum to answer this question
