5/29/2023 0 Comments Hobby farm tax deductions![]() ![]() Income tax is a progressive tax, which means the more taxpayers earn, the more they pay those earning lower incomes pay less tax to the IRS. (A deduction is an expense that the taxpayer can lawfully subtract from his or her gross income to arrive at his or her net income.) After these deductions, you have a net income, which may be positive or negative. Imagine you’ve collected in a pot all the money you made from farming, and now you have to deduct all the expenses you incurred running the farm. Of course, you always have expenses when running a business.
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