Tax Breaks Associated with Orchard Planting
First: planting an orchard is by no way a means of acquiring fast cash. Orchard cultivation is a lot of hard work and the reason tax refunds are possible for orchards or small farms is because the expenses of operating either business will likely exceed actual profit on any proceeds. The state of Texas has set forth some pretty reasonable and easy to comply with state regulations that determine whether or not residents, farmers and orchard growers are eligible for tax refunds.
If you are interested in planting an orchard, an orchard of any kind of tree, you probably have a passion for growing things. You probably enjoy spending time outside and are looking forward to a complication free way to earn a living. Just you and the trees and the seasons. This is going to be great! Prepare thoroughly, in order to experience the best outcome possible.
You should know how beneficial it is to treat your orchard like a business. For documentation purposes and financial reports, treating an orchard as a fully functional and legitimate business venture will help you reap your reward because likely some of the only profit or monetary give back your orchard is going to provide-at least for the first few years-will be this. Keep your receipts for everything related to growing these trees. All receipts, you must keep!
Verify the zoning laws of your area allow you to plant fruit yielding trees on your property. If you are in a rural area, you probably are in the clear. Even if you have just a few square acres, it is likely you will be permitted to plant or farm on the land. “Rural estates” are usually zoned to allow for agriculture and this includes agriculture as a means of income.
Since your end of the year estimations will be a lot easier to come by if you don’t actually have to out of the blue guestimate, keep records of as much as you possibly can. Just like how you’re keeping your receipts for everything, keep detailed bookkeeping records of general expenses, trips, mileage, etc. Tracking your mileage can be a separate and inclusive help to you when you are attempting to get tax refunds for your orchard business. Mileage logs will go a long way to help calculate your monetary investment over a span of 12 months, especially because the IRS already has a way of calculating gas mileage as a write-off. Work within the system to make it work for you.
Plan ahead. All of this record keeping and receipt stashing are going to tell a sad, short story of a failed opportunity to turn an orchard into a profit wielding business if you do not plan ahead. Just as if you were asking for investors with a real, more traditional business start up-plan for your orchard. Project and estimate costs, goals and expected returns. The amount that you put into anything, is the amount you get out.
For advise, consultations or just to speak with an expert in everything tree, do not hesitate to call 281-441-4179 today!