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

As someone who has ran a small business they don’t.

What you can claim is limited.

Here is what happens, they put everything on the business account, and let the tax accountant figure it out.

Then they tell you they “deduct” everything.

Technically true, but at the end of day only some stuff is actually getting counted, and they probably don’t even know what exactly is.