3 ms·
Once upon a time there were laws that said that if you had expenses on certain farms you could deduct those from your income (and sometimes carry those expenses
by scarejunba 7y ago
Once upon a time there were laws that said that if you had expenses on certain farms you could deduct those from your income (and sometimes carry those expenses over to later). There was no true economic loss. You still had the farm. It's just that expenses counted as deductible.
This was for the reason that farms sometimes have a large lead time before they're productive and I want to give you the chance of surviving the first few years that weren't productive.
I think this was notorious as a citrus and almond farm thing.
- xyzzyz 7y agoYou can always deduct ordinary and necessary business expenses from the income, and carry them over next 20 years. This is completely normal.
- gnicholas 7y ago> You can always deduct ordinary and necessary business expenses from the income Except for costs that must be capitalized and depreciated/amortized, which includes lots and lots of things (computers, furniture, anything else with a useful life)