Posted: 5/31/2007 3:00:38 PM EDT
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Hello, I am getting a land mortgage to buy a small piece of farm land. It is enrolled in the CRP so even though it is only growing grass, it is a legitimate farm. From reading the IRS site, I see that the mortgage interest would be tax deductible. My question is, If say $300 of each months payment is interest, should I expect all of that back with my refund? Or is it some kind of schedule and I would only get a fraction back? Thanks |
| I sell real estate and do a lot with farms. My best advice to you is go to your nearest farm Bureau and sit and talk with them. Most of them are glad to help you most of the time. There are so many different programs in each state I couldn't begin to answer your question. |
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The hobby loss rules will limit the deductibility of losses. Basic rule is that the activity must show a profit 3 out of the last 5 years to be considered a business, which will allow the losses to be deductible. If it is considered a hobby, the expenses can reduce the revenues down to zero, but no losses can be deducted. There is more to it than that, but that should get you started. Scott |
Can't say it much better than that. |
