WHAT TO DO AFTER INVESTING IN FARMLAND
EXPERT TIPS TO GET YOU STARTED
You’ve read all about investing in farmland. You’ve found the perfect Iroquois County Illinois farmland for sale. Now, what do you do after your purchase?
CHECK OUT ZONING LAWS
Before using your farmland investment for agricultural farming, check with your local zoning department. If you plan on having livestock, you should check in with the local health department. Different zoning laws determine the type and number of livestock you are allowed to have on your property. Adding enhancements like a residential home or a well to your property will require checking with your county on specific zoning laws as well.
FIND OUT WHAT YOUR PROPERTY TAX BREAKS ARE
One of the major benefits of investing in farmland for sale in Iroquois County Illinois is property tax breaks. These tax breaks are given to assist farmers by keeping farming a commodity in the United States. Each state has different property tax benefits and rules, so make sure to find out what the current benefits and rules are for Illinois. Check in with a local tax assessor or the Illinois’ Department of Agriculture to find out the details.
The IRS will allow you to deduct the depreciation of assets like barns, houses, or other kinds of structures on your farmland. You can deduct machinery, equipment, and vehicles used on your farmland. You can also deduct expenses that are essential to providing income on your farmland. For example, if you have livestock or horses, you can deduct livestock feed as well as veterinarian costs.
MAKE THE MOST OF INCOME TAX
To get the most income tax breaks with your farmland investment, you need to prove to the IRS that your investment is a business and not a hobby. If your investment makes a profit in 3 out of 5 years, you can reap additional income tax benefits.
TO SPEAK WITH ONE OF OUR EXPERT LAND BROKERS ABOUT IROQUOIS COUNTY ILLINOIS FARMLAND FOR SALE, PLEASE GIVE US A CALL AT 815.718.2244 OR SUBMIT OUR CONSULTATION REQUEST FORM.
*This information is for educational purposes only. It is not intended to take the place of qualified advice from a tax professional or IRS representative. You should always remember that deductions and tax write-off rules and regulations for farmland owners are constantly changing. If you have any IRS questions or want to stay up to date with deduction rules, please contact the IRS for assistance.
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