I live next to farmers. Everything they do and own is a business expense. The business owns everything. Home, cars, utv, electric, propane, internet, new land, gas, desiel, and red desiel. They go on multiple caribbean vacations, rent out the banquet room and claim it as a business expense. Is this really what business are able to do?
In: Economics
Everything is usually an exaggeration, but they can stretch it a lot.
Vehicles are pretty easy to include, as they can be used for doing the job, computers and such can be office equipment. You can even claim parts of your home if you do any work there, like a home office, or if you do stuff like farmers markets and do canning.
That said, the IRS does watch. My dad got flagged for an audit a while back. Came back fine as he’s very careful about what he claims, but we did get a funny story out of it.
He claimed a 4 wheeler on his taxes as farm use. Had it down as an ATV. The auditor thought he’d caught a stretch, and demanded we explain how a Television was farm us.
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