Hey Betty,
My main email is this gmail one.
How are you? Thanks for the IRS info, I found the page HERE great in an IRS sort-of way. Good work.
I am lined up to make a profit in 2011 at Aslan's How, assuming the initial startup costs were a gift from a generous donator. I have income from the (5) CSA members, (2) collective families, and will have income from retail sales to local restaurants/markets.
My main expenses will be soil fertility, seeds, and yearly expansion projects.
-Aaron
____________
From: Betty J. McMaster [b.j.-att.net]
Sent: Monday, March 28, 2011 9:53 AM
To: Lois Luke
Cc: Aaron C. Luke
Subject: Rules for making sure that your farm is a "for profit" business
Hi Lois and Aaron,
We are taking depreciation deductions, which is appropriate. However, this IRS guideline shows that one of the standards that the IRS likes to use for making the determination as to whether the farm is a "for profit" business is whether the business "shows a profit in three of the past five year"s.
We of course won't know that for five years, but I just thought that I would point that out.
Please read the other factors, since in my opinion they do show that this is not inteded to be a "hobby".
-Betty
Showing posts with label finances. Show all posts
Showing posts with label finances. Show all posts
Tuesday, March 29, 2011
Tuesday, February 22, 2011
chart of accounts :: farm financial backbone
I get to track finances with Quickbooks. Does it also tracks depreciation for taxes? My favorite thing is looking at income pie charts versus expenses pie charts. I need to make 2k this year to break even with initial capital purchases from last year; the tractor, irrigation system, and implements have projected life spans of 20 years. I hope that selling eggs as value added in CSA shares will pay for the cost of the chicken food... 100 $/month! Below is the chart of accounts that my mother and I put together; let me know if you want a copy.
Account Type Balance Total Description Tax Line
Professional Fees:Accounting Expense
Accounts Payable Accounts Payable Unpaid or unapplied vendor bi
Accounts Receivable Accounts Receivable Unpaid or unapplied customer
Accumulated Depreciation Fixed Asset Accumulated depreciation on e
Income:Collective Income:Acreage Lease Income Lease of Acreage 1 acre Schedule F: Sales of livestock/product rais...
Advertising Expense
Ask My Accountant Other Expense Transactions to be discussed
Insurance Expense:Auto Expense
Truck & Equipment O&M:Auto Maintenance Expense Schedule F: Repairs and maintenance
Bank Service Charges Expense Bank account service fees, ba Schedule F: Other farm expenses
Building Repairs:Barn Expense Repairs to barn
Livestock - WSDA:Bedding Expense Bedding misc poultry supplies
Value Added:Bowen Apiary Cost of Goods Sold Honey Sales
Building Repairs Expense
Buildings/Land Fixed Asset
Professional Fees:Business Licenses and Permits Expense Business licenses, permits, a Schedule F: Other farm expenses
Professional Fees:Certifications Expense
Income:Collective Income Income
Office Expense:Computer and Internet Expenses Expense Computer supplies, off-the-sh Schedule F: Other farm expenses
Professional Fees:Consulting Expense
Cost of Goods Sold Cost of Goods Sold Costs of items purchased and
Income:Collective Income:Cover Crop Income
Ground Applications - WSDA:Cover Crop - WSDA Expense Schedule F: Chemicals
Bank Service Charges:Credit Card Fees Expense
Income:CSA Income Income CSA Income Schedule F: Sales of livestock/product rais...
Production - WSDA:Cultivating, Spreading - WSDA Expense Payment to other individuals
Value Added:Custom Aslan's Bags Cost of Goods Sold Bags
Delivery Expense Delivery
Depreciation Expense Expense Depreciation on equipment, bu
Equipment/Machinery:Desk Jet Printer Fixed Asset
Equipment/Machinery:Discer Fixed Asset
Professional Fees:Education Expense classes & books
Income:Eggs Income
Travel & Entertainment:Entertainment Expense
Truck & Equipment O&M:Equipment Maintenance Expense Schedule F: Repairs and maintenance
Equipment Rental Cost of Goods Sold Vehicles, machinery and equip Schedule F: Rent/lease vehicles, equip.
Equipment/Machinery Fixed Asset ] Furniture and equipment with
Production - WSDA:Farm Consultant - WSDA Expense Recommendations by outside so
Farm Supplies Expense Misc farm supplies
Ground Applications - WSDA:Fertilizers and Lime - WSDA Expense Fertilizers and lime purchase Schedule F: Fertilizers and lime
Income:Collective Income:Fertlizer & Lime Income
Bank Service Charges:Finance charge Expense
Income:Food Stamps Income Government program payments r Schedule F: Agricultural program payments
Freight and Trucking Expense Amounts paid for freight or t Schedule F: Freight and trucking
Equipment/Machinery:Fridge Fixed Asset
Fuel Tax Credits and Other Inc. Income Other income including gasoli Schedule F: Other farm income
GA.PAC Bank 0 Aaron's personal checking acc
GaPac Business 011 Bank Business Checking account
Utilities:Garbage Expense
Truck & Equipment O&M:Gasoline, Fuel and Oil Expense Gasoline, fuel or oil used fo Schedule F: Gasoline, fuel, and oil
Value Added:Gothberg Farms Cost of Goods Sold
Livestock - WSDA:Grain - WSDA Expense Feed, Grain by weight Schedule F: Feed purchased
Grant Dept of Agriculture Income Grant received for organic fa
Equipment/Machinery:Green Easy Precision Garden See Fixed Asset Earth way seeder
Ground Applications - WSDA Expense Applications to Soil, fertili Schedule F: Chemicals
Insurance Expense:Home Owners Expense
Income Income
Insurance Expense Expense Insurance expenses Schedule F: Insurance, other than health
Interest Expense Expense Interest payments on business Schedule F: Interest expense, other
Interest Income Other Income
Inventory Asset Other Current Asset Costs of inventory purchased
Equipment/Machinery:Irrigation System Fixed Asset
Landscaping Expense Flower garden
Professional Fees:Legal Fees Expense
Insurance Expense:Liability Insurance Expense
Livestock - WSDA Expense Poultry
Travel & Entertainment:Meals Expense
Livestock - WSDA:Medical/Vacci. Treatment - WSDA Expense Medical records, vaccination
Building Repairs:Milk Barn Expense Milk Barn/Produce stand
Advertising:Networking Expense
Ground Applications - WSDA:Non WSDA/OMRI Approved Expense Requires verification, custom
Office Expense Expense Office supplies expense Schedule F: Other farm expenses
Office Expense:Office Supplies Expense Paper, tape, etc.
Equipment/Machinery:Old Tiller Fixed Asset Tiller was purchased for part
Opening Balance Equity Equity Opening balances during setup
Organic Production - WSDA Expense Any item that results in orga Schedule F: Seed and plants purchased
Other Income Other Income
Owner's Contribution Equity Purchases paid by owner perso
Owners Draw Equity - Monies taken out of the busin
Owners Equity Equity Monies invested in the busine
Payroll Expenses Expense Payroll expenses Schedule C: Wages paid
Payroll Liabilities Other Current Liability Unpaid payroll liabilities. A
Equipment/Machinery:Pneumatic Spreader Fixed Asset Push pneumatic spreader
Ground Applications - WSDA:Post Harvest Materials - WSDA Expense materials used on crop after Schedule F: Fertilizers and lime
Office Expense:Postage Expense
Equipment/Machinery:Potatoe Plow Fixed Asset vendor misrepresented the abi
Livestock - WSDA:Poultry Infrastructure Expense Enclosure, Troughs, etc
Livestock - WSDA:Poultry Purchases - WSDA Expense Cost of chickens
Equipment/Machinery:Precise Scale Fixed Asset 50# Precise Scale
Income:Produce Sold Aaron Income Produce Sold Aaron
Produce Supplemental Cost of Goods Sold Supplemental Produce to round
Production - WSDA Expense Cultivating, weeding costs
Professional Fees Expense Payments to accounting profes Schedule F: Other farm expenses
Utilities:Puget Sound Energy Expense
Purchase Orders Non-Posting Purchase orders specifying it
Rent Expense Expense Rent paid for company offices Schedule F: Rent/lease land, animals
Repairs and Maintenance Expense Incidental repairs and mainte Schedule F: Repairs and maintenance
Equipment/Machinery:Rototiller Maschio Fixed Asset Maschio 18023 A120 SN#707497
Sales Orders Non-Posting Orders from customers to be f
Sales Tax Payable Other Current Liability
Organic Production - WSDA:Seeds & Plants Purchased - WSDA Expense Seeds and plants purchased fo Schedule F: Seed and plants purchased
Advertising:Signage Expense Logo
Small Tools and Equipment Expense Purchases of small tools or e Schedule F: Other farm expenses
Office Expense:Computer and Internet Expenses:Software Expense Software
Ground Applications - WSDA:Soil Amendments - WSDA Expense Manure, compost Schedule F: Fertilizers and lime
Production - WSDA:Soil/Tissue Analysis Expense Costs
Ground Applications - WSDA:Soil Amendments - WSDA:Starter Expense Starter
Storage and Warehousing Expense Amounts paid to store farm co Schedule F: Other farm expenses
Supplies/materials Cost of Goods Sold twist ties
Utilities:Telephone Expense
Equipment/Machinery:Tiller Fixed Asset 0
Equipment/Machinery:Tractor Yammar - YM2420 + misc Fixed Asset Yammar - YM2420
Travel & Entertainment:Travel Expense
Travel & Entertainment Expense
Truck & Equipment O&M Expense Fuel, oil, repairs, and other Schedule F: Car and truck expenses
Undeposited Funds Other Current Asset -Funds received, but not yet d
Utilities Expense Water, electricity, garbage, Schedule F: Utilities
Equipment/Machinery:V-Ditcher Fixed Asset Equipment for digging ditches
Value Added Cost of Goods Sold
Income:Value Added Income Cheese, Honey,
Visa Business 0894 Credit Card 0 Business Credit Card
Income:Water Income Water for subleased acreage
Equipment/Machinery:Water Washing Station Fixed Asset Water washing station
Equipment/Machinery:Well Fixed Asset For irrigation
Equipment/Machinery:Wheel Hoe Fixed Asset Wheel hoe Valley Oak Tool Co.
Account Type Balance Total Description Tax Line
Professional Fees:Accounting Expense
Accounts Payable Accounts Payable Unpaid or unapplied vendor bi
Accounts Receivable Accounts Receivable Unpaid or unapplied customer
Accumulated Depreciation Fixed Asset Accumulated depreciation on e
Income:Collective Income:Acreage Lease Income Lease of Acreage 1 acre Schedule F: Sales of livestock/product rais...
Advertising Expense
Ask My Accountant Other Expense Transactions to be discussed
Insurance Expense:Auto Expense
Truck & Equipment O&M:Auto Maintenance Expense Schedule F: Repairs and maintenance
Bank Service Charges Expense Bank account service fees, ba Schedule F: Other farm expenses
Building Repairs:Barn Expense Repairs to barn
Livestock - WSDA:Bedding Expense Bedding misc poultry supplies
Value Added:Bowen Apiary Cost of Goods Sold Honey Sales
Building Repairs Expense
Buildings/Land Fixed Asset
Professional Fees:Business Licenses and Permits Expense Business licenses, permits, a Schedule F: Other farm expenses
Professional Fees:Certifications Expense
Income:Collective Income Income
Office Expense:Computer and Internet Expenses Expense Computer supplies, off-the-sh Schedule F: Other farm expenses
Professional Fees:Consulting Expense
Cost of Goods Sold Cost of Goods Sold Costs of items purchased and
Income:Collective Income:Cover Crop Income
Ground Applications - WSDA:Cover Crop - WSDA Expense Schedule F: Chemicals
Bank Service Charges:Credit Card Fees Expense
Income:CSA Income Income CSA Income Schedule F: Sales of livestock/product rais...
Production - WSDA:Cultivating, Spreading - WSDA Expense Payment to other individuals
Value Added:Custom Aslan's Bags Cost of Goods Sold Bags
Delivery Expense Delivery
Depreciation Expense Expense Depreciation on equipment, bu
Equipment/Machinery:Desk Jet Printer Fixed Asset
Equipment/Machinery:Discer Fixed Asset
Professional Fees:Education Expense classes & books
Income:Eggs Income
Travel & Entertainment:Entertainment Expense
Truck & Equipment O&M:Equipment Maintenance Expense Schedule F: Repairs and maintenance
Equipment Rental Cost of Goods Sold Vehicles, machinery and equip Schedule F: Rent/lease vehicles, equip.
Equipment/Machinery Fixed Asset ] Furniture and equipment with
Production - WSDA:Farm Consultant - WSDA Expense Recommendations by outside so
Farm Supplies Expense Misc farm supplies
Ground Applications - WSDA:Fertilizers and Lime - WSDA Expense Fertilizers and lime purchase Schedule F: Fertilizers and lime
Income:Collective Income:Fertlizer & Lime Income
Bank Service Charges:Finance charge Expense
Income:Food Stamps Income Government program payments r Schedule F: Agricultural program payments
Freight and Trucking Expense Amounts paid for freight or t Schedule F: Freight and trucking
Equipment/Machinery:Fridge Fixed Asset
Fuel Tax Credits and Other Inc. Income Other income including gasoli Schedule F: Other farm income
GA.PAC Bank 0 Aaron's personal checking acc
GaPac Business 011 Bank Business Checking account
Utilities:Garbage Expense
Truck & Equipment O&M:Gasoline, Fuel and Oil Expense Gasoline, fuel or oil used fo Schedule F: Gasoline, fuel, and oil
Value Added:Gothberg Farms Cost of Goods Sold
Livestock - WSDA:Grain - WSDA Expense Feed, Grain by weight Schedule F: Feed purchased
Grant Dept of Agriculture Income Grant received for organic fa
Equipment/Machinery:Green Easy Precision Garden See Fixed Asset Earth way seeder
Ground Applications - WSDA Expense Applications to Soil, fertili Schedule F: Chemicals
Insurance Expense:Home Owners Expense
Income Income
Insurance Expense Expense Insurance expenses Schedule F: Insurance, other than health
Interest Expense Expense Interest payments on business Schedule F: Interest expense, other
Interest Income Other Income
Inventory Asset Other Current Asset Costs of inventory purchased
Equipment/Machinery:Irrigation System Fixed Asset
Landscaping Expense Flower garden
Professional Fees:Legal Fees Expense
Insurance Expense:Liability Insurance Expense
Livestock - WSDA Expense Poultry
Travel & Entertainment:Meals Expense
Livestock - WSDA:Medical/Vacci. Treatment - WSDA Expense Medical records, vaccination
Building Repairs:Milk Barn Expense Milk Barn/Produce stand
Advertising:Networking Expense
Ground Applications - WSDA:Non WSDA/OMRI Approved Expense Requires verification, custom
Office Expense Expense Office supplies expense Schedule F: Other farm expenses
Office Expense:Office Supplies Expense Paper, tape, etc.
Equipment/Machinery:Old Tiller Fixed Asset Tiller was purchased for part
Opening Balance Equity Equity Opening balances during setup
Organic Production - WSDA Expense Any item that results in orga Schedule F: Seed and plants purchased
Other Income Other Income
Owner's Contribution Equity Purchases paid by owner perso
Owners Draw Equity - Monies taken out of the busin
Owners Equity Equity Monies invested in the busine
Payroll Expenses Expense Payroll expenses Schedule C: Wages paid
Payroll Liabilities Other Current Liability Unpaid payroll liabilities. A
Equipment/Machinery:Pneumatic Spreader Fixed Asset Push pneumatic spreader
Ground Applications - WSDA:Post Harvest Materials - WSDA Expense materials used on crop after Schedule F: Fertilizers and lime
Office Expense:Postage Expense
Equipment/Machinery:Potatoe Plow Fixed Asset vendor misrepresented the abi
Livestock - WSDA:Poultry Infrastructure Expense Enclosure, Troughs, etc
Livestock - WSDA:Poultry Purchases - WSDA Expense Cost of chickens
Equipment/Machinery:Precise Scale Fixed Asset 50# Precise Scale
Income:Produce Sold Aaron Income Produce Sold Aaron
Produce Supplemental Cost of Goods Sold Supplemental Produce to round
Production - WSDA Expense Cultivating, weeding costs
Professional Fees Expense Payments to accounting profes Schedule F: Other farm expenses
Utilities:Puget Sound Energy Expense
Purchase Orders Non-Posting Purchase orders specifying it
Rent Expense Expense Rent paid for company offices Schedule F: Rent/lease land, animals
Repairs and Maintenance Expense Incidental repairs and mainte Schedule F: Repairs and maintenance
Equipment/Machinery:Rototiller Maschio Fixed Asset Maschio 18023 A120 SN#707497
Sales Orders Non-Posting Orders from customers to be f
Sales Tax Payable Other Current Liability
Organic Production - WSDA:Seeds & Plants Purchased - WSDA Expense Seeds and plants purchased fo Schedule F: Seed and plants purchased
Advertising:Signage Expense Logo
Small Tools and Equipment Expense Purchases of small tools or e Schedule F: Other farm expenses
Office Expense:Computer and Internet Expenses:Software Expense Software
Ground Applications - WSDA:Soil Amendments - WSDA Expense Manure, compost Schedule F: Fertilizers and lime
Production - WSDA:Soil/Tissue Analysis Expense Costs
Ground Applications - WSDA:Soil Amendments - WSDA:Starter Expense Starter
Storage and Warehousing Expense Amounts paid to store farm co Schedule F: Other farm expenses
Supplies/materials Cost of Goods Sold twist ties
Utilities:Telephone Expense
Equipment/Machinery:Tiller Fixed Asset 0
Equipment/Machinery:Tractor Yammar - YM2420 + misc Fixed Asset Yammar - YM2420
Travel & Entertainment:Travel Expense
Travel & Entertainment Expense
Truck & Equipment O&M Expense Fuel, oil, repairs, and other Schedule F: Car and truck expenses
Undeposited Funds Other Current Asset -Funds received, but not yet d
Utilities Expense Water, electricity, garbage, Schedule F: Utilities
Equipment/Machinery:V-Ditcher Fixed Asset Equipment for digging ditches
Value Added Cost of Goods Sold
Income:Value Added Income Cheese, Honey,
Visa Business 0894 Credit Card 0 Business Credit Card
Income:Water Income Water for subleased acreage
Equipment/Machinery:Water Washing Station Fixed Asset Water washing station
Equipment/Machinery:Well Fixed Asset For irrigation
Equipment/Machinery:Wheel Hoe Fixed Asset Wheel hoe Valley Oak Tool Co.
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