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South Central Iowa | It is perfectly acceptable to show carryover losses. That is not an issue. Your bigger issue if you defer income too much is this tidal wave of money chasing you. Eventually it will catch you and you all of a sudden look like Mr. Millionaire on your taxes, but you are still your poor self, haha! But hey, at least the poor corn price came in handy... In a sort of backwards way.
I don't think it will show a red flag, especially if you are a regular tax payer. If you show losses for 5, 7, 10 years, then the IRS starts to wonder how you are still in business. They do understand that farming is a capital business with lots of depreciable assets and seasonality's that don't match up with the fiscal year. Plus, I think they hate auditing farmers; poor bookkeepers, complicated filings, mixture of personal and "business" accounts, dirty crumpled receipts, live out in the sticks, etc.... But that is just my opinion, I am sure there are some guys that have been audited numerous times. But as far as my own, I only expense obvious things that I have receipts for, keep everything itemized and stored, and ready to go if they want it. If anything I don't expense enough and count everything as income. They would probably find they owe me money. | |
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Anyone else showing a loss on their taxes?
