How do farmers claim everything personal and business as an expense.

Question

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

Answer 1

Same as any other small business owner. You can only claim the expenses necessary to run the business, which may include vehicles and the fuel to run them, utilities, investments such as purchase of land. There is very limited latitude to claim gifts or entertainment for business associates.