10 year tax break

[Big Stoney]

Looking to build a sugar house and I was informed that I could not get a tax break if we were only a hobby producer. It seems like I am working too hard for it to just be a hobby. We made about 40 gallons of syrup this year. Does anyone know what I would need to do to not be considered a hobby? We are in New York state and I do not need any more taxes. I would like the tax break.

[highlandcattle]

In our town the access or wrote up a form for ag. Exemption buildings. We were the first to sign up for maple syrup. So the sap house is exempt. We have the value deducted from the rest of the property. So I guess start there and then the dept. Of ag. Get a good tax guy. They know how to get all the deductions. You need to show everything!!!! Then be able to make a profit within I believe 3-5 yes. So save every scrap of paper with a big file folder. A calendar for dates of purchase of equipment. Hope this helps.

[mudr]

Following this thread closely,looking to build a sugar house in 2 yrs. I thought you needed $10,000 in annual sales to count buildings as ag exempt? Please say I'm wrong....

[maple flats]

In NYS you need a 2 yr. average of $10,000 or more to qualify for an Ag Assessment (off the farm income line on your tax return). I don't know if that is where they draw the line between hobby and a real farm.

[highlandcattle]

OK, I found our form. NYS dept. Of taxation and finance office of real property tax services. Application for tax exemption of agricultural and horticultural bldings and structures. RP-483. We signed up in 2012 when this was available!!!

[1arch]

Looking to build a sugar house and I was informed that I could not get a tax break if we were only a hobby producer. It seems like I am working too hard for it to just be a hobby. We made about 40 gallons of syrup this year. Does anyone know what I would need to do to not be considered a hobby? We are in New York state and I do not need any more taxes. I would like the tax break.
You are fortunate in your state if exemptions are available for ag ricultural buildings. Agricultural land use exemption applies in WI however a sugar house structure is taxed as any other structure... Kind of two steps forward and one back in regards to tax savings. I have business tax deductions for multiple years negating farm profits and actually have to bury 2015 investments this year to show a profit.. It seems to me that any hobby producer that is not claiming income from selling maple products essentially results in a financial wash. in addition I wouldn't understand the IRS even having interest in a hobby producer due to the long term investment of the hobby if it had originally been converted to a formal business entity.