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#318196 - 01/19/13 02:58 PM Pond and taxes
John Wann Offline
Hall of Fame


Registered: 05/16/12
Posts: 1676
Loc: Phelps county, Missouri
Anybody know if you can write off new pond on your taxes?
_________________________
If you ain't gonna fart, why eat the beans?
.
RES,HBG,YP,HSB,SMB,CC,and FHM. .seasonal trout.

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#318198 - 01/19/13 03:11 PM Re: Pond and taxes [Re: John Wann]
RAH Offline
Lunker

Registered: 05/17/09
Posts: 4331
Loc: Indiana, Boone County, 25 mile...
Are you a farmer?

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#318199 - 01/19/13 03:14 PM Re: Pond and taxes [Re: John Wann]
John Wann Offline
Hall of Fame


Registered: 05/16/12
Posts: 1676
Loc: Phelps county, Missouri
No
_________________________
If you ain't gonna fart, why eat the beans?
.
RES,HBG,YP,HSB,SMB,CC,and FHM. .seasonal trout.

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#318200 - 01/19/13 03:15 PM Re: Pond and taxes [Re: John Wann]
John Wann Offline
Hall of Fame


Registered: 05/16/12
Posts: 1676
Loc: Phelps county, Missouri
Raised a couple hogs.
_________________________
If you ain't gonna fart, why eat the beans?
.
RES,HBG,YP,HSB,SMB,CC,and FHM. .seasonal trout.

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#318212 - 01/19/13 06:11 PM Re: Pond and taxes [Re: John Wann]
RAH Offline
Lunker

Registered: 05/17/09
Posts: 4331
Loc: Indiana, Boone County, 25 mile...
There may be conservation deductions depending on your farming situation.

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#318222 - 01/19/13 07:14 PM Re: Pond and taxes [Re: John Wann]
rmedgar Offline
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Hall of Fame 2014

Lunker

Registered: 03/12/04
Posts: 2435
Loc: S. Mississippi
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...
_________________________
Just do it...

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#318225 - 01/19/13 07:17 PM Re: Pond and taxes [Re: John Wann]
John Wann Offline
Hall of Fame


Registered: 05/16/12
Posts: 1676
Loc: Phelps county, Missouri
I wonder if the deduction would be worthwhile. Anybody know how much it is.
_________________________
If you ain't gonna fart, why eat the beans?
.
RES,HBG,YP,HSB,SMB,CC,and FHM. .seasonal trout.

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#318227 - 01/19/13 07:24 PM Re: Pond and taxes [Re: John Wann]
Bluegillerkiller Offline
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Lunker

Registered: 09/08/09
Posts: 3536
Loc: Illinois, St. louis area
If it was worth it you'd know about it.. And so would everyone else
_________________________
I believe in catch and release. I catch then release to the grease..

BG. CSBG. LMB. HSB. RES.


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#318229 - 01/19/13 07:31 PM Re: Pond and taxes [Re: John Wann]
John Wann Offline
Hall of Fame


Registered: 05/16/12
Posts: 1676
Loc: Phelps county, Missouri
Your prob right BGK.
_________________________
If you ain't gonna fart, why eat the beans?
.
RES,HBG,YP,HSB,SMB,CC,and FHM. .seasonal trout.

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#318233 - 01/19/13 07:37 PM Re: Pond and taxes [Re: John Wann]
Bluegillerkiller Offline
Hall of Fame
Lunker

Registered: 09/08/09
Posts: 3536
Loc: Illinois, St. louis area
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..
_________________________
I believe in catch and release. I catch then release to the grease..

BG. CSBG. LMB. HSB. RES.


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#318236 - 01/19/13 07:56 PM Re: Pond and taxes [Re: John Wann]
rmedgar Offline
Ambassador
Hall of Fame 2014

Lunker

Registered: 03/12/04
Posts: 2435
Loc: S. Mississippi
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...
_________________________
Just do it...

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#318401 - 01/21/13 12:16 PM Re: Pond and taxes [Re: John Wann]
jeffhasapond Offline
Ambassador
Field Correspondent
Lunker

Registered: 07/28/06
Posts: 7613
Loc: Pond in No CA, Me in So CA
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.

_________________________
JHAP
~~~~~~~~~~

"My mind is a raging torrent, flooded with rivulets of thought cascading into a waterfall of creative alternatives."
...Hedley Lamarr (that's Hedley not Hedy)

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#318466 - 01/21/13 09:47 PM Re: Pond and taxes [Re: John Wann]
Dave Davidson1 Offline
Moderator
Lunker

Registered: 01/04/06
Posts: 13875
Loc: Hurst & Bowie, Texas
Add 1.9 to good post count.
_________________________
It's not about the fish. It's about the pond. Take care of the pond and the fish will be fine. PB subscriber since before it was in color.

Without a sense of urgency, Nothing ever gets done.

Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley Rancher and Farmer Muleshoe Texas 1892-1985 RIP

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#318535 - 01/22/13 10:52 AM Re: Pond and taxes [Re: John Wann]
RydforLyf Offline


Registered: 08/03/11
Posts: 90
Loc: Marietta, GA
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


Edited by RydforLyf (01/22/13 10:54 AM)

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#318542 - 01/22/13 11:25 AM Re: Pond and taxes [Re: Dave Davidson1]
jeffhasapond Offline
Ambassador
Field Correspondent
Lunker

Registered: 07/28/06
Posts: 7613
Loc: Pond in No CA, Me in So CA
Originally Posted By: Dave Davidson1
Add 1.9 to good post count.
Score!!!
_________________________
JHAP
~~~~~~~~~~

"My mind is a raging torrent, flooded with rivulets of thought cascading into a waterfall of creative alternatives."
...Hedley Lamarr (that's Hedley not Hedy)

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#318550 - 01/22/13 11:51 AM Re: Pond and taxes [Re: John Wann]
Tums Offline


Registered: 09/06/12
Posts: 721
Loc: Alabama
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

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#318607 - 01/22/13 07:03 PM Re: Pond and taxes [Re: John Wann]
Dave Davidson1 Offline
Moderator
Lunker

Registered: 01/04/06
Posts: 13875
Loc: Hurst & Bowie, Texas
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.


Edited by Dave Davidson1 (01/22/13 07:05 PM)
_________________________
It's not about the fish. It's about the pond. Take care of the pond and the fish will be fine. PB subscriber since before it was in color.

Without a sense of urgency, Nothing ever gets done.

Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley Rancher and Farmer Muleshoe Texas 1892-1985 RIP

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#318611 - 01/22/13 07:26 PM Re: Pond and taxes [Re: John Wann]
Bluegillerkiller Offline
Hall of Fame
Lunker

Registered: 09/08/09
Posts: 3536
Loc: Illinois, St. louis area
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
_________________________
I believe in catch and release. I catch then release to the grease..

BG. CSBG. LMB. HSB. RES.


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#318612 - 01/22/13 07:35 PM Re: Pond and taxes [Re: John Wann]
teehjaeh57 Offline
Chairman, Pond Boss Legacy award; Moderator; field correspondent
Lunker

Registered: 01/22/08
Posts: 8107
Loc: Lincoln, NE
Dave...what bird species do you favor? Not too familiar with Texas species, probably a lot more resident species than we have in NE.
_________________________
Many men go fishing all of their lives without knowing that it is not fish they are after. ~ Henry David Thoreau





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#318621 - 01/22/13 08:28 PM Re: Pond and taxes [Re: John Wann]
Robert-NJ Offline


Registered: 09/06/12
Posts: 294
Loc: South NJ/Varna Bulgaria
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

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#318623 - 01/22/13 09:10 PM Re: Pond and taxes [Re: John Wann]
Zep Offline
Hall of Fame 2014


Registered: 07/27/10
Posts: 3271
Loc: Dallas & Wills Point, Tx
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.
_________________________
Fishing has never been about the fish....


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#318654 - 01/23/13 06:48 AM Re: Pond and taxes [Re: John Wann]
george1 Offline
Lunker

Registered: 06/30/07
Posts: 3794
Loc: Plano Texas
Gotta love Texas!
_________________________

N.E. Texas 2 acre and 1/4 acre ponds
Original george #173 (22 June 2002)





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#318655 - 01/23/13 06:49 AM Re: Pond and taxes [Re: John Wann]
Dave Davidson1 Offline
Moderator
Lunker

Registered: 01/04/06
Posts: 13875
Loc: Hurst & Bowie, Texas
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?
_________________________
It's not about the fish. It's about the pond. Take care of the pond and the fish will be fine. PB subscriber since before it was in color.

Without a sense of urgency, Nothing ever gets done.

Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley Rancher and Farmer Muleshoe Texas 1892-1985 RIP

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#318659 - 01/23/13 07:24 AM Re: Pond and taxes [Re: John Wann]
FireIsHot Offline
Moderator


Registered: 02/28/11
Posts: 4040
Loc: Emory TX
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.
_________________________
AL

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#318666 - 01/23/13 09:46 AM Re: Pond and taxes [Re: Dave Davidson1]
skinnybass Offline
Ambassador
Field Correspondent
Lunker

Registered: 01/26/10
Posts: 457
Loc: southern illinois
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.


Edited by skinnybass (01/23/13 09:53 AM)
_________________________
Trying to help with 7.5 Acres in the Chain of Lakes Illinois
- -
The fish would stay out of trouble if it could just keep its fool mouth shut.
Turns out there is a lot I should be learning from the fish.

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