# Tree Farming and the IRS



## diggdug (May 27, 2005)

Hello,
I am going to start a Christmas tree farm and am wondering is it best to start as a business or a farm? I don't plan to have tree's ready to sell for about 8 years but I would like to "write off" my start-up costs now and in the future. I guess what I need to know is does a tree farm fall under the same category as an agricultural farm with the IRS? Or should I be operating as a business now? Thanks!


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## fwf (May 27, 2005)

According to all of the information I have found, and the research of my accountant, tree farms and private forestry operations do not qualify as ag farms. Thus we are not entitled to the benefits and tax incentives of traditional farms.

I have argued many times that we are just like any other farm, just with a different type of crop. Forestry is even a branch of the USDA. Nobody buys it, because the federal govt has set very strict guidelines for ag farms, and tree farms don't qualify.

Still, I would check with your accountant to be sure.


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## trimmmed (May 27, 2005)

fwf, I think you need a new accountant  lol

http://www.timbertax.org/strategies...=strategies&topic=structure&subtopic=treefarm


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