If you are looking to purchase farm land for sale, there are a few things you need to know about income and deductions from these types of properties. For one, farms also include plantations, ranches, ranges, and orchards. On these lands, farmers can raise livestock, poultry or fish, as well as grown fruits and vegetables.
Much like the way farm owners work to preserve their land, the government works to preserve resources on that land. For this reason a limitation or conservation easement may be placed on a property to protect its natural resources.
Although employment for farmers and other jobs within the agricultural industry is estimated to decrease by 2% by 2024, there are still good reasons to invest in the farming business. Here are some useful facts you should know about taxes and farms:
Wages paid to farm employees both full and part-time can be deducted. Social security, Medicare and income taxes must all be withheld from employees’ wages.
In states like Montana, where the population is expected to grow 14% by 2043, food demands are increasing and the demand for farm land for sale is rising just as much. Now that you know some of the tax information associated with owning farm land for sale, you are in a better place to make an educated decision. Think of it as an investment in your future. Make your property make money for you.