# Tax Write-offs and the Like for land?



## th_Wolverine (Apr 15, 2013)

Ok, so I know there's a way you can get a tax write off or something to that effect for running a certain sized tree-farm. Now, some jobs in America have nifty loopholes come tax season;:banana: I know my dad was a minister, and if we went on a "vacation" to another state, he could write the travel off in his taxes as work expenses because he always preached for some congregation when we went. At least somthing to that effect. 

So whats some ways I can best utilize my lands to keep Uncle Sam from charging my arm and leg to run my own homestead and small business from it?


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## agmantoo (May 23, 2003)

In most states you can reduce property taxes by getting a deferral if you qualify your property as agriculture or forestry use. Check with your local county tax office.

Running your farm as a "for profit business" will qualify you to take expenses as a deduction and you can depreciate equipment used in the operation. You will turn your fed taxes on a 1040F form.


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## Hoopjohn (Mar 8, 2013)

In Wisconsin, people with wooded land can put the acreage in different versions of "Forest Law". 
Many rules/regulations involved. Moreso now than in the past. Its a long term program. 25 years or 50 years.

Basically there are 2 versions. Public Forest Law and Private. If one puts there land in public forest law, its open to the public for hunting/hiking/cross country skiing. The land can be gated, and no vehicular travel is allowed. I believe the property taxes when having land in this program are a very paltry $.75/acre. 
Private Forest law means the land is enrolled in the program and there is no public access for ones land. This program has property taxes that are approx. $8/acre. 
For both programs, when the property is logged, the landowner pays 5% of the state average for stumpage into the program. State foresters check the timber sale for accounting purposes. 

I would guess the average property tax for wooded 40 acre parcels in Wisconsin to average about $1500. Both of these programs offer substancial property tax savings. 

It has become a controversial program over the last few months. Wealthy landowners/hunt clubs owning huge blocks of land did the following. Lets say they own 5000 acres. They would put most of the land in public forest law for the lowest tax rates, and then have all the land with any type of access in private forest law. The net effect was that all the land was inaccessible to the public.

The program was developed so that land could be put aside for long term foresty growth, a huge part of the Wisconsin economy.

I would guess that most states have some type of similar program. Like everything in life, its not for everyone.


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## edcopp (Oct 9, 2004)

The term "tax write off" presumes that one will owe some taxes. If there are no taxes owed then no write off is needed.

The simple solution is to not make any profit to be taxed. It's easier than you might think. So don't go and pay a premium price for a property that might generate a "Tax write off", because it might not too.

Never underestimate the power of government here either. They can make a perfectly good tax write off go away in a heartbeat, sometimes retroactively too. They take good care of their land owning slaves, sometimes sooner rather than later.


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