Just a couple acres can save you alot of money

[chromebumpers]

These days saving money wherever possible is a great thing. Did you know that in every state if you have a couple acres, (many states even much less space), you can consider your property a farm? As a farm you can usually qualify for sales tax exemption when you make application to your state’s department of revenue. Since the 1980’s our politicians have taken certain measures to lighten the tax burden to farmers.
Now you have to think outside the box when you say the word “farm.” It can mean virtually anything. In many places renting a house with a yard in suburbia and you sell firewood from that address can safice. Have a local farmer overseed your lawn with feedgrasses and return to cut and haul it away a couple times and get paid for it. Propagate tree saplings in free discarded plastic containers from local landscape nurseries when you pick up seeds for free at the parks and local townships usually have free compost for their residents. Sell something, get paid and write off all your expenses.

The IRS looks at farms in a much different way. In conventional businesses, lose money for 3 years straight and they consider it a hobby. With a farm, as long as you receive ”some income” you‘re write-offs can greatly exceed your income for many years in a row and stay in good standing with the IRS.

With tax exempt status (issed with an 8 digit license number) you can register that number with any retailer you do business with, Home Depot to Pet Smart, online or in person. Obviously if you live in a state that doesn’t have any sales tax this whole point is irrelevant.
Now not everything in every state can be tax exempt, you must use some diligence and look up state by state what is allowed.
This is just one of many examples I know that can save money, of course this idea takes a little effort. You have to want to turn off the tv and want something better in life.

 

[Grumpy]

yeah, it helps in most states, in TEXAS I did some research and so many people had purchase 5 acre plots and used the property
and it tax advantages that they raised the acreage minimum to 6 to in most areas 10 acres to qualify as whole housing developments were built on 5 acre plots to take advantage of the reduced taxes, in fact a large local medical facility has its parking area surrounded with fences filled (with 3-4 horses) on several dozens of acres to take some tax, advantages, and a guy on staff whose job is feeding and tending horse and providing veterinarian care even if only 1 in every 600 patience's have 4 hooves

 

[chromebumpers]

You’re talking about something entirely different. In most states, and it can differ county to county sometimes - there are varing acts of Homesteading that allow for discounts on your residential realestate taxes where you primarily reside.

Here in PA, as it also is in many other states, the primary factor is a minimum property size and in my county its 10 acres. Its called act 319 Law here. It provides an option or an opportunity for tax relief if the owner of the 10 plus acres simply agrees not to further sub-divide the land to build more houses on the land Or to commercialize it.
If the owner decides later to develop the property then they will be subject to Rollback taxes for the entire time they recieved any discounts.

To be classified as a farm by the IRS, property must be ten acres in size, and in Agricultural Use, Agricultural Reserve, or Forest Reserve. Agricultural Use applications may be less than 10 acres in size if the property is capable of generating at least $2,000 annually in farm income.


According to the United States Department of Agriculture, “A farm is defined as any place from which $1,000 or more of agricultural products were produced and sold, or normally would have been sold, during the year.”

What I was referring to is a way to save sales tax on many things, even large ticket items, in a legal way. Regardless if you rent or own, for large or very small property sizes.