Like any business, farmers are liable for paying a variety of taxes. These are determined by variables such as whether or not you own your own land, have hired employees, sell non-food items, and where and how you sell your farm products. There are also specific farm exemptions from paying taxes.
Click on the links below to access resources specific to farmers and farm business taxes.
Agriculture Tax Guide – Department of Revenue: This guide helps farmers and those who sell goods or services to farmers understand how state taxes apply to Washington’s agricultural industry.
Tax Incentives for Farmers – Washington State Dept. of Revenue: Many businesses may qualify for several tax incentives offered by Washington. These incentives include deferrals, reduced B&O rates, exemptions, and credits. Visit the Dept. of Revenue to find out if your farm business qualifies.
Washington State Department of Agriculture – Download their farm taxes fact sheet, and view full WSDA resources on the subject.
PennState Extension – Understanding-Farm-Income-Taxes-Handout: As a farmer it is important for you to have a basic understanding on how federal income taxes affect your business. This handout provides a clear and in-depth overview of federal farm income tax.
Schedule-F Farm Income and Loss Prevention: Presented by Peggy Hall, Legacy Accounting and Software Training.