# Farm taxes breaks?



## sleep4centuries (Jun 8, 2015)

I was told in maryland if you have a couple farn animals and are selling products from then you can get tax exemptions. I was hoping someone could tell me who to get in contact with and is it worth it?


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## Bearfootfarm (Jul 13, 2006)

Many states have a minimum income level you have to meet to get the breaks, and there can be other regulations depending on the products you sell.

You can usually get a property tax exemption if it's classified as "farm land", and the other exemption would be for sales taxes on items you buy for the "business" and upkeep on the farm.

http://taxes.marylandtaxes.com/Busi...ation/Tax_Exemptions/Agricultural_Exemptions/


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## sleep4centuries (Jun 8, 2015)

If it's zone for ag would it be able to be tax exempt or are there other requirements? It's 5.5 acres with a small house on it. We want to start small though with a half acre garden couple chickens some rabbits and a goat. Well and three horses but we have those now. I'm just wondering if we need a minimum as far as that's concerned.


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## Clem (Apr 12, 2016)

Every state has their own laws. Sales tax exemptions are pretty much universal, in that if you are running a farm and selling produce, you can whip out your sales tax exemption certificate and not pay taxes on fertilizer, etc. However, you have to be a legitimate operation, you may well need to be documented, which could include an inspection, and by involving yourself, may be expected to collect and turn in taxes from your sales. 

Here, you can get farm use tags for your vehicle if you own over 10 acres and actually farm it. I think you save around $4 a year. 

Anyway, voluntarily involving yourself with yet another tax agency seems to be a slippery slope.


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## sammyd (Mar 11, 2007)

You need to find a CPA that knows farms if you're looking for tax exemptions.
Talk to your town board about how your land is being taxed. 
A couple chickens a rabbit and a goat sounds more like a hobby than a farm and there are tax breaks for hobbying as well but they are usually limited by how much you make with the hobby.

http://extension.psu.edu/business/a.../understanding-your-federal-farm-income-taxes
Is a good read


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## Bearfootfarm (Jul 13, 2006)

sleep4centuries said:


> If it's zone for ag would it be able to be tax exempt or are there other requirements? It's 5.5 acres with a small house on it. We want to start small though with a half acre garden couple chickens some rabbits and a goat. Well and three horses but we have those now. I'm just wondering if we need a minimum as far as that's concerned.


You can get all the answers at the link I posted


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## FarmerKat (Jul 3, 2014)

As others suggested, you need to see what the requirements are for your state. I sell enough eggs and animals and have enough land to qualify for the exemption. I claim all of that income on our tax return (it would be easy not to as most of my income is in small cash amounts) but the sales tax exemption is totally worth it. For example, when we purchased a tractor, it translated into thousands of dollars in sales tax we did not have to pay.


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