Pond Boss
Posted By: John Wann Pond and taxes - 01/19/13 07:58 PM
Anybody know if you can write off new pond on your taxes?
Posted By: RAH Re: Pond and taxes - 01/19/13 08:11 PM
Are you a farmer?
Posted By: John Wann Re: Pond and taxes - 01/19/13 08:14 PM
No
Posted By: John Wann Re: Pond and taxes - 01/19/13 08:15 PM
Raised a couple hogs.
Posted By: RAH Re: Pond and taxes - 01/19/13 11:11 PM
There may be conservation deductions depending on your farming situation.
Posted By: rmedgar Re: Pond and taxes - 01/20/13 12:14 AM
Like RAH said, there is a conservation deductions, with a few restrictions: they'll give you a tax deduction if you pledge not to develop your land (you can sell/give to a family member and they can build a house). If you sell before 10 years you have to repay the deduction that you were given.
I am not a lawyer and am just passing on what I did about 10 years ago, concerning 33A I had in GA. I took the deduction, and sold w/in 10 years and had to repay taxes...
Posted By: John Wann Re: Pond and taxes - 01/20/13 12:17 AM
I wonder if the deduction would be worthwhile. Anybody know how much it is.
Posted By: Bluegillerkiller Re: Pond and taxes - 01/20/13 12:24 AM
If it was worth it you'd know about it.. And so would everyone else
Posted By: John Wann Re: Pond and taxes - 01/20/13 12:31 AM
Your prob right BGK.
Posted By: Bluegillerkiller Re: Pond and taxes - 01/20/13 12:37 AM
Now if you had a farm or raised fish to sell or used it for irrigation you could prolly find an angle.. But me and you alike are screwed no tax break for us..
Posted By: rmedgar Re: Pond and taxes - 01/20/13 12:56 AM
In my isolated case, I think I saved about 20% per year. I didn't raise any crops or anything like that - I didn't even live there! I think the number of acres you are willing to dedicate is a factor, and it probably has to be your whole property. Again, I'm just talking about my experience...
Posted By: jeffhasapond Re: Pond and taxes - 01/21/13 05:16 PM
If you are a farmer there is a tax deduction for Soil & Water Conservation expenses. These expenses include "the construction, control, and protection of earthen dams (apparently Martian dams do not qualify), watercourses, outlets and ponds."

But you must first qualify for the expenses:

To qualify you must:

1. Be a farmer. A farm includes raising for sale: livestock, diary, poultry, fish, fruit, plantations, ranches, orchards. NOTE: The IRS defines a fish farm as an area where fish and other marine animals are grown or raised and artificially fed, protected, etc.

2. Your annual conservation expenses cannot exceed 25% of the gross income derived from farming. Therefore if you do not have any gross farm income then you do not receive any deduction for conservation expenses. (Excess conservation expenses can however be carried over to offset future farm gross income).

3. You can only deduct soil and water conservation expenses if they are consistent with a plan approved by the Natural Resources Conservation Service (NRCS) . This does not need to be a site specific plan although a site specific plan certainly does qualify. The plans can also be a NRCS county plan or a comparable state agency plan.

If you are merely a pond hobbyist be careful with this deduction. There is an entire set of IRS regulations surrounding farms including what is commonly referred to as Hobby Farm regulations.

A free down loadable IRS publication, Publication 225 Farmer's Tax Guide discusses this in greater detail.

LEGAL DISCLAIMER:
The information provided above is for informational and entertainment purposes only and should not be considered as, nor relied upon as tax advice. Check with your tax preparer or pizza delivery person to see if you meet the criteria for any deduction discussed above. JHAP is not an expert in tax law as it pertains to farms or farm law as it pertains to taxes. The opinions expressed by JHAP are not necessarily those of Pond Boss's management, moderators, advertisers, members or online spiders.

Posted By: Dave Davidson1 Re: Pond and taxes - 01/22/13 02:47 AM
Add 1.9 to good post count.
Posted By: RydforLyf Re: Pond and taxes - 01/22/13 03:52 PM
In Georgia, we have a Conservation Use Assessment that bases taxes on the a $/acre value of use based on which basis is used used. In our case we are using timber a assessment and the value is extremely low when compared to fair market value.

When we bought the property last year it was not under the conservation assessment and the taxes were similar to what we pay for our house. After getting into the program the taxes dropped by over 90%.

The downside is that it is a 10 year covenant and if we break it, we have to pay the back taxes at 2x what we saved. If you can do the time, it's a great plan.

-RFL
Posted By: jeffhasapond Re: Pond and taxes - 01/22/13 04:25 PM
Originally Posted By: Dave Davidson1
Add 1.9 to good post count.
Score!!!
Posted By: Tums Re: Pond and taxes - 01/22/13 04:51 PM
Check into things well even for your state. Some states give tax breaks for things like irrigation , fire protection ect...

Here is your Missouri fire protection income tax credit.

http://www.moga.mo.gov/statutes/c300-399/3200000093.htm
Posted By: Dave Davidson1 Re: Pond and taxes - 01/23/13 12:03 AM
In Texas we get an agriculture exemption if we farm or raise cattle. A new law was enacted a couple of years back that allowed us to switch over to a wildlife exemption from an ag exemption if we had been raising cattle and had the cattle/ag exemption for a minimum of 5 years.

Evidently, a lot of old ranchers were dying and their kids had no interest in going back to the ranch. Thus, the non ag exemption was forcing the sale of property that had been in the family for generations.

I got rid of the cows and started managing for wildlife. I have to do 4 of 7 wildlife activities. Some of them are:

Build bird houses.

Shoot feral dogs and cats

provide food plots

provide watering places

cut down trees like cedar that shade the ground and keep native grasses from growing

Shoot non indigenous wildlife like feral hogs

The property taxes on my 133 acres is about $800 per year. The majority of it is the house and 5 acres around it.
Posted By: Bluegillerkiller Re: Pond and taxes - 01/23/13 12:26 AM
Enjoy that tax rate Dave.. My old house was $500/month, this new place is way out in the sticks so its alot cheaper $200-250/month
Posted By: teehjaeh57 Re: Pond and taxes - 01/23/13 12:35 AM
Dave...what bird species do you favor? Not too familiar with Texas species, probably a lot more resident species than we have in NE.
Posted By: Robert-NJ Re: Pond and taxes - 01/23/13 01:28 AM
Dave I really need to move to Texas..............My pond is on 35 acres and 14-16 acres of it is useless salt marsh and a tidal creek and I pay $3500 a year frown
Posted By: Zep Re: Pond and taxes - 01/23/13 02:10 AM
Same here Dave. My brother and I were somewhat surprised when we got our first property tax notice on the property we purchased in late March 2012. We have about 72 acres, 3 ponds, no house yet. We allow our neighbor via a typed up lease agreement to graze his horses, shetland pony, donkeys, and a few cows on our property to qualify for the AG exemption that was recently approved. The taxes are $85 a year. I am sure the taxes will go up some when the mini-log cabins are completed, but we've been pleased thus far.
Posted By: george1 Re: Pond and taxes - 01/23/13 11:48 AM
Gotta love Texas!
Posted By: Dave Davidson1 Re: Pond and taxes - 01/23/13 11:49 AM
TJ, like most places, we are loaded with sparrows. However, we also have cardinals, mocking birds, wrens, etc. Our most beautiful bird is the bunting. They are the closest thing to technicolor that I've ever seen. However, they are extremely shy and don't live in the cities. I see them a lot in the country. To get them to come to the bird feeder just outside my house, I have to put up a piece of plywood for their privacy.

I targeted bluebirds with the bird houses and it worked. That is, they worked until squirrels and coons destroyed the houses to eat the eggs and chicks. I'm currently building more houses and will use squirrel excluders around the Tposts. I'm also going to hang a couple of houses from tree limbs. But the bluebirds are cavity nesters and I don't know whether they will buy into the idea of a windy, swinging house. Anybody have any experience with that?
Posted By: FireIsHot Re: Pond and taxes - 01/23/13 12:24 PM
We have the Ag exemption because of our hay. We don't make a lot on the hay, but it sure is nice come tax time.

Only funny thing is the school taxes. We're 1/2 a mile inside Hopkins county, and the school taxes are lower than Rains county just next door. Thinking it's because Hopkins has a much larger tax base. Just a guess though.

It's probably hard to fund education in rural areas, when the school enrollment is larger than the town the school resides in.
Posted By: skinnybass Re: Pond and taxes - 01/23/13 02:46 PM
Originally Posted By: Dave Davidson1
(...) Our most beautiful bird is the bunting. They are the closest thing to technicolor that I've ever seen. However, they are extremely shy and don't live in the cities. (...) Anybody have any experience with that?


Dave:
We have indigo buntings that have taken up in our bird houses. I don't know about their nesting habits where you are, but here, they prefer low-laying brush (I have a hedge-row with a few bushes, some trees and a lot of ivy growing in it).

I'm not sure how we got them in our 3 birdhouses (Last count, we have 4 male birds, but that is just how many i have seen at one time). However, i know that the nests are not all in birdhouses, and that at least 2 of the families live in the hedge row.

Our houses are at varying heights, in various "terrain." Two of our 3 houses have buntings. one is hanging from an L bracket off of the neighbor's fence (directly to the left of the brush line), and is susceptible to the billions of squirrels I also have (thanks to having the largest oak trees in illinois....), but for some reason they seem to leave the nest alone. The second is very high up in a massive oak i have in the front yard, not near that brush line at all.

your guess is as good as mine as to how to get them to nest near your feeders. They do use my feeder, whenever the tree rats aren't trying to get to it, and I usually see them at the feeder which is also attached to the fence, about 20 yards from the birdhouse.

I do see them much more often coming out of the hedge row/brush line than any other place, and I know i am blessed to have so many on my relatively small lot.

I also have downy woodpeckers, redbellied woodpeckers, and in the neighboring woods i have at least 4 owls of varying types which often come to hunt the tree-rats. One, i am convinced, is a horned owl, just because it is massive (although the wife, the one educated in these things, says i am crazy, and its more likely to just be a very large type of barn owl or maybe a barred owl). In the winters, we are also lucky enough to have the bald eagles nesting on the mississippi bluffs, who are experts at hunting our tree rats. my little 2 acres is a bird-watcher's dream.

good luck with your nests, dave, and if anybody knows how to convince an owl to stay for keeps, let me know.

-skinny

edit:
It might also be useful to mention that usually when i see all of the buntings together they are in my mulberry tree.
Posted By: teehjaeh57 Re: Pond and taxes - 01/23/13 03:25 PM
Dave

I also have BB houses on the farm, and my first year the eggs/chicks were ravaged by something - coons, snakes, possum - not sure. So I added a squirrel baffle to each, and have never had another issue and have raised sometimes multiple broods in each house in a single season. They are cheap and well worth the investment.

I've never seen a bunting - Indigo or Painted, but they're both on my bucket list. We have Cardinals, Blue Jays, White Crowned Sparrows, Chickadees, Goldfinches, House Finches, Red bellied and Downy woodpeckers often visit the feeders daily year round here. Some species that are less common and get me excited are: White and Red breasted Nuthatch, Pine Siskens, White Throated Sparrows [awesome calls], Tufted Titmouse, and Carolina Wrens which are slowly creeping in from formerly warmer climates.

Besides the Buntings, I've also always wanted to see a Waxwing - Cedar or Bohemian - would be a huge treat. Apparently they're around, but I've never seen one...I think they prefer berries and there are a few good shrubs/trees to plant to try and attract them like a Hawthorne. Maybe some day.
Posted By: skinnybass Re: Pond and taxes - 01/23/13 04:02 PM
apologies, i thought when looking for "bluebirds" that naturally meant the indigo buntings. I didnt even stop to think that there are true blue birds you could be targeting.

Thanks
skinny

edit....only on this forum can a tread about taxes be hijacked to a thread about bluebirds.....
Posted By: Dave Davidson1 Re: Pond and taxes - 01/23/13 04:04 PM
I don't know what species of bunting we have but there are 7 different colors on the males. They are absolutely stunning. The females are a drab greenish yellow and just as shy as the males.

We get a few hummingbirds but not very many. The most interesting thing is watching large females chase the smaller ones away from the feeder. Those gals are viscous. I wish I could get as many as I've seen in trips to the mountainous areas.

I'm about to start building my bluebird houses for the year. This time, I'm going to give them a coat of paint, starting with primer and finishing with a sealer. The sun pretty well wrecks them in about 2 years when I don't give them a finish. I'm also going to make a smaller hole and screw a metal washer around the hole to TRY to protect them from the tree rats. My squirrels have somehow figured out how to whip the excluders. Or, I'm going to have to build a better excluder. I bought some from the Bird man. Although they worked for others, my rats somehow figured them out.
Posted By: skinnybass Re: Pond and taxes - 01/23/13 04:15 PM
I think those are probably painted buntings. Indigo buntings, although they have several colors, are predominantly blue, with occasionally a rusty-orange belly. They molt in the winters, to the point where males and females are indistinguishable, but then in the spring, they molt back to a fairly brilliant blue color, albeit with a few flecks of green & brown in them as well, and some get the orange underneath.

If i can get a pic of one this year, i will post it on here.

much like you shouldn't take JHAP as any more than just informative, though, i'm no ornithologist, so you shouldn't go by my guess if you think i am wrong.
Posted By: kenc Re: Pond and taxes - 01/23/13 04:49 PM
Teej, if you ever come my way, we can show you several indigo bunting at our farm. They like river bottoms and I had never seen one till we went up there. They love big weed fields. The males are solid black but in the sunlight they appear to be a very vivid blue. The females are a drab color and they let you get fairly close to them if you are in a truck. They make a pocket nest so I doubt if they would use bird houses but don't know for sure.
Posted By: jeffhasapond Re: Pond and taxes - 01/23/13 05:11 PM
Two additional thoughts occur to me while reading this thread.

Originally Posted By: skinnybass
much like you shouldn't take JHAP as any more than just informative, though, i'm no ornithologist, so you shouldn't go by my guess if you think i am wrong.

1. SB, you really need to work on your legal disclaimers.

Originally Posted By: teehjaeh57
Some species that are less common and get me excited are: White and Red breasted Nuthatch,

2. For some reason I am not at all surprised that TJ is excited by a Red Breasted Nuthatch.
Posted By: teehjaeh57 Re: Pond and taxes - 01/23/13 06:24 PM
Dave have you tried squirrel baffles? Still no luck? Maybe a longer pole and get the baffle up higher so squirrels can't jump beyond the baffle location? I loathe squirrels...and I mean LOATHE them - on the order of GSF.

Ken that is a generous offer - again, it's a bird on my bucket list and I'd love a chance to see one.

Mike you never cease to amaze me, I had no clue you were into birding. Too cool.

Anyone have experience with Waxwings?

JHAP - anytime I can work breasts into a thread about something as vapid and soul sucking as US taxation I seize the opportunity. Don't even feint you aren't deeply grateful...you should employ this tactic for your clients moving forward to pique their interest during your meetings.
Posted By: kenc Re: Pond and taxes - 01/23/13 08:12 PM
Cedar waxwings migrate through here in spring. We have lots of America Holly trees and the waxwings will eat the bottom 1/3,then the middle and finish off the top 1/3 on the third day. However this year the mast crop is down and the robins and squirrels have eaten most of the berries so the waxwings won't stay long. We have a rental home with a large mulberry and when I was working on it in May there were maybe 50 waxwings on that tree twice that was eating the black berries. I don't know if they migrated late or if they live close enough to return to this tree. This is a mulberry that produces black berries. I have never seen them on a red mulberry and they grow freely in this area. I have seen them migrating maybe 8 times in the 39 years we have lived here. I do see them in the summertime in W.Va. at elevations of 3500' or more.
Posted By: brook wilson Re: Pond and taxes - 01/23/13 09:10 PM
I think we spend as much time watching birds at our farm as we do working--nothing wrong with that tho'. We regularly get blue birds in our houses and also some tree swallows. Indigo buntings are also regular but arrive late spring and leave early fall. We feed year round and have more goldfinches than anything. Occasionally, we'll get a horde of hummers--up to 50. Normally, though, we only have a dozen or so. Purple finches are regular too. This year we noticed our first waxwings and finally got orioles to eat from our feeders. Occasionally, we have rose breasted grosbeaks pass some time here in addition to summer and scarlet tanagers. We have a couple species of flycatchers, which hang around the bee hive--unfortunately and some wrens, chickadees, titmice, and ruby crowned kinglets. Of course, we get mockingbirds and the occasional catbird. In addition to the whitebreasted nuthatch, we have had our first regular red breasted nuthatch. There are loads of downies, hairies, red bellies, flickers, and red headed woodpeckers. We also had a couple pileateds this winter that were fairly regular. We have a covey of bobwhites and way too many raptors that chase them. Last weekend, both a kestrel and a red tailed hawk were hanging out at the pond, chasing a few of our pets. We've also got a lot of owls and plenty of crows to chase them. I could go on, but I've rambled enough. The wife even puts feeders around her tree stand while she hunts. I'm not that bad yet.
Posted By: skinnybass Re: Pond and taxes - 01/23/13 09:54 PM
Originally Posted By: jeffhasapond

Originally Posted By: skinnybass
much like you shouldn't take JHAP as any more than just informative, though, i'm no ornithologist, so you shouldn't go by my guess if you think i am wrong.

1. SB, you really need to work on your legal disclaimers.


The information contained in posts on this site by the user skinnybass (hereafter "SB") is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information provided by SB.

Accordingly, the information provided by SB is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, ornithological or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal, ornithological or other competent advisers. Before making any decision or taking any action, you should consult an ornithological professional.

While SB has made every attempt to ensure that the information contained in his posts have been obtained from reliable sources, SB and Pond Boss's management, moderators, advertisers and members are not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in the information provided by SB is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of ornithology and fitness for a particular purpose. In no event will SB, its related partnerships or corporations, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in posts by SB or for any consequential, special or similar damages, even if advised of the possibility of such damages.


how's that?
smile
-skinny


afterthought, I should make this my new standard policy on life:
Before making any decision or taking any action, you should consult an ornithological professional.

second afterthought:
JHAP's advice is probably a little more solid than my understanding of ornithology. I mean....I see birds, he knows laws, i'm just sayin'. It's also more applicable to this thread, or at least it was until TJ brought redbreasts into the equation.
Posted By: jeffhasapond Re: Pond and taxes - 01/23/13 09:58 PM
Originally Posted By: teehjaeh57
Dave have you tried squirrel baffles?
Squirrel Baffles, really? Are they anything like muffler bearings?

Originally Posted By: teehjaeh57
JHAP - anytime I can work breasts into a thread about something as vapid and soul sucking as US taxation I seize the opportunity. Don't even feint you aren't deeply grateful...you should employ this tactic for your clients moving forward to pique their interest during your meetings.
I just want my clients to stay awake, I don't want them all hot and bothered.

Now go play with your Squirrel Baffles.
Posted By: jeffhasapond Re: Pond and taxes - 01/23/13 10:02 PM
Originally Posted By: skinnybass
how's that?
smile
-skinny
That sir is a work of art.


Originally Posted By: skinnybass
afterthought, I should make this my new standard policy on life:
Before making any decision or taking any action, you should consult an ornithological professional.
Especially if you intend to flip the bird.
Posted By: jeffhasapond Re: Pond and taxes - 01/23/13 10:04 PM
Originally Posted By: skinnybass
....or at least it was until TJ brought redbreasts into the equation.
And TJ is constantly bringing them up!!!
Posted By: teehjaeh57 Re: Pond and taxes - 01/23/13 11:21 PM
Scarlet Tanager...another one for the bucket list.
Posted By: Dwight Re: Pond and taxes - 01/24/13 01:49 AM
Flying toilets and worm bellied cormorants are bad news without disclaimer.
Posted By: Dave Davidson1 Re: Pond and taxes - 01/24/13 12:05 PM
sb, you're an artist
Posted By: skinnybass Re: Pond and taxes - 01/24/13 02:49 PM
Originally Posted By: Dave Davidson1
sb, you're an artist

you all give me much too much credit, unless, that is, you consider copying and pasting an artform, in which case, friggin Picasso's over here.

Good luck with your bluebirds, Dave. I'd like to hear if you have any luck.

Again, anybody with info on how to convince an owl that he can stick around for the weekly service of tree-rat cleanup, I would greatly appreciate it. Of course, i would make him sign a contract to ensure services rendered.

-skinny
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