Farm Tax Exemption.. surprise, more complex than it sounds!

Real good advice and great examples of tax or non tax exempt items.

Generally speaking - Sales tax which is paid on a piece of equipment (the subject of this video) is factored into the basis of the cost of the equipment (capital expenditure ) and is recouped (in part ) by the deprecation of that asset over time. By the way, a chainsaw which is used by a tree farm to cut the trees is not considered to be consumable component of the product - the trees - and therefore would be subject to sales tax. Blades, fuel, oil, and maintance costs for the chainsaw would be sales tax exempt.

You make great points! Our local feed stores put most people on tax exempt. Feed feeds livestock, consumable, tax exempt. Some say there is even hobby farm tax exemptions. BETTER PAY TAXES FIRST, then have your tax man get that money back if you are really exempt. Play it safe.

Thank you this was very helpful and informative 👍👍

Thanks for the info! We are planning to plop urchase a tractor soon and this is a great information! My eyes are now wide open! :-)

Thank you for some clarification and good information, be cautious, as a business... & maybe consider "risk"(potential tax audit) vs reward (no tax) and what would be the more comfortable play. Again thank you for this. 👍

Unless it is for a lawn are business. Again depending on the state county and local laws. Check your CPA and tax lawyer

I pay no taxes in Texas on anything I buy for my farm, even a chain say....lol.

Good info

I grow trees on my property. Trees give off oxygen, people depend on my oxygen to live. Right? Tax exempt? 🤔🤔🤔😎😎😎

We sale Hardwood Lumber retail. Farmers constantly claim they are exempt even though they are buying Walnut.

Depends on the state.... So look up the rules for your state.

If i buy a tractor to maintain an unmaitained public road should that be tax except?

Just buy in NH, no sales tax. Pay through the ying yang for property tax though.

Funny you being so near to Delaware you don't mention it... no sales tax... and I'm in DE and looking to upgrade tractors...

New Hampshire is one of a few Tax Exempt state.

SOUTH DAKOTA shout out!

Could u give us all a vid on the tier 5 emissions comming down the pipe and how it will affect the lawn n garden side.

Tax exempt on most things is hard now in Ohio. We take it off taxes. Had a hard time explaining why 9mm bullets were tax exempt.