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Joined: Apr 2003
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Lunker
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OP
Lunker
Joined: Apr 2003
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Just received a letter from US Dept of Agriculture that said something to the effect of "..the $5329 you received as part of the cost share on your water retention project is considered taxable income...this letter is in lieu of a form 1099-G..."
Ouch...guess I never thought about it, and now comes the really painful part...coming up with about $1500 to pay the IRS on this. SO...when NRCS paid for "half" of my pond, it was really something a bit less than half. That gift horse and his mouth thing...supposed to remember that, I guess.
In a lifetime, the average driver will honk 15,250 times. My wife figures I'm due to die any day now...
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Joined: May 2004
Posts: 13,985 Likes: 281
Moderator Lunker
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Moderator Lunker
Joined: May 2004
Posts: 13,985 Likes: 281 |
"Live like you'll die tomorrow, but manage your grass like you'll live forever." -S. M. Stirling
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Joined: Sep 2003
Posts: 13,762 Likes: 302
Moderator Ambassador Field Correspondent Hall of Fame 2014 Lunker
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Moderator Ambassador Field Correspondent Hall of Fame 2014 Lunker
Joined: Sep 2003
Posts: 13,762 Likes: 302 |
What does that mean, Theo?
Excerpt from Robert Crais' "The Monkey's Raincoat:" "She took another microscopic bite of her sandwich, then pushed it away. Maybe she absorbed nutrients from her surroundings."
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Joined: May 2004
Posts: 13,985 Likes: 281
Moderator Lunker
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Moderator Lunker
Joined: May 2004
Posts: 13,985 Likes: 281 |
There Ain't No Such Thing As A Free Lunch!
"Live like you'll die tomorrow, but manage your grass like you'll live forever." -S. M. Stirling
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Joined: May 2004
Posts: 234
Lunker
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Lunker
Joined: May 2004
Posts: 234 |
Matt,
Another consideration.......the half YOU paid up front is probably considered a farm/ranch improvement and therefore deductable as an expense. Depreciation another possible consideration? Depends on the creativity of your tax person.
Catch 22 I guess.
Ed
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Joined: Sep 2003
Posts: 13,762 Likes: 302
Moderator Ambassador Field Correspondent Hall of Fame 2014 Lunker
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Moderator Ambassador Field Correspondent Hall of Fame 2014 Lunker
Joined: Sep 2003
Posts: 13,762 Likes: 302 |
Thanks Theo. That's one I would not have figured out.
It took me a few days to figure out what ROTF and ROTFLMAO meant.
Excerpt from Robert Crais' "The Monkey's Raincoat:" "She took another microscopic bite of her sandwich, then pushed it away. Maybe she absorbed nutrients from her surroundings."
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Joined: Sep 2002
Posts: 2,587
Lunker
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Lunker
Joined: Sep 2002
Posts: 2,587 |
Theo -- Robert Heinlein??
Subscribe to Pond Boss MagazineFrom Bob Lusk: Dr. Dave Willis passed away January 13, 2014. He continues to be a key part of our Pond Boss family...and always will be.
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Joined: May 2004
Posts: 13,985 Likes: 281
Moderator Lunker
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Moderator Lunker
Joined: May 2004
Posts: 13,985 Likes: 281 |
Dr. Dave:
Take a gold star ("The Moon is a Harsh Mistress")
Ed:
You take a gold star, too. Pond expenses may not be depreciable (Is the pond generating income? Used for watering livestock?) but should at least be kept track of to take off of capital gains for tax purposes if/when you sell the place. See your accountant or estate planner.
"Live like you'll die tomorrow, but manage your grass like you'll live forever." -S. M. Stirling
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Joined: Sep 2003
Posts: 13,762 Likes: 302
Moderator Ambassador Field Correspondent Hall of Fame 2014 Lunker
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Moderator Ambassador Field Correspondent Hall of Fame 2014 Lunker
Joined: Sep 2003
Posts: 13,762 Likes: 302 |
Hey man, can't I have a gold star too?
Excerpt from Robert Crais' "The Monkey's Raincoat:" "She took another microscopic bite of her sandwich, then pushed it away. Maybe she absorbed nutrients from her surroundings."
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Joined: May 2004
Posts: 13,985 Likes: 281
Moderator Lunker
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Moderator Lunker
Joined: May 2004
Posts: 13,985 Likes: 281 |
How about a gold foil covered chocolate star?
"Live like you'll die tomorrow, but manage your grass like you'll live forever." -S. M. Stirling
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Joined: Sep 2003
Posts: 13,762 Likes: 302
Moderator Ambassador Field Correspondent Hall of Fame 2014 Lunker
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Moderator Ambassador Field Correspondent Hall of Fame 2014 Lunker
Joined: Sep 2003
Posts: 13,762 Likes: 302 |
It's funny that you mention that. Right now I'm looking at a gold foil covered chocolate bell that was left over from X-mas. There are some red & green foil covered bells also.
Excerpt from Robert Crais' "The Monkey's Raincoat:" "She took another microscopic bite of her sandwich, then pushed it away. Maybe she absorbed nutrients from her surroundings."
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Joined: Nov 2005
Posts: 121
Lunker
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Lunker
Joined: Nov 2005
Posts: 121 |
Matt,
Nothing personal, but the painful part is that I as an overtax payer, had to subsidize your pond. I'm building a pond this summer so would you please send me a check?
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Joined: Apr 2003
Posts: 823
Lunker
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Lunker
Joined: Apr 2003
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Hillbilly: I'll take every penny I can get. I own 50 acres, and don't farm (other than the neighbor's 4-H sheep, there's no other crops or stock on the place) so I can't really claim any kind of exemption/expense. Sorry...but my taxes go there, too... As long as every farmer in the country gets to take advantage of this program...I'm gonna, too. I'm not griping about paying the tax on the money...just wish they'd have mentioned that. Kind of looked at like "scholarship" money...not taxed. Now, I'll know.
In a lifetime, the average driver will honk 15,250 times. My wife figures I'm due to die any day now...
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Joined: Nov 2005
Posts: 121
Lunker
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Lunker
Joined: Nov 2005
Posts: 121 |
"Sorry...but my taxes go there, too... As long as every farmer in the country gets to take advantage of this program...I'm gonna, too."
I can understand that free money is appealing, but to me that sounds like the same rationale the looters were taking in New Orleans. "It ain't right, but I'm going to get mine since everyone else is." I grew up on a farm, and still live on it, though we don't work it any more, and used to have a lot of respect for the farming community, until I started subscribing to periodicals which cover the ag industry. Since then I've come to the conclusion that the ag community in America has basically morphed into a welfare state, who've come to believe that they are entitled to a piece of everyone else's money, because they apparently have some right to be farmers, even though they can't make a living from it. I'll build my own pond on my own dime.
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Joined: Nov 2005
Posts: 121
Lunker
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Lunker
Joined: Nov 2005
Posts: 121 |
Robinson, I hear ya. Other folks, don't get me wrong here. I love farming and farmers, they are my people, and I wouldn't trade my overgrown hill farm for the fanciest penthouse in New York. I just think that farm subsidies and the ag lobby have gotten out of hand and have snowballed to the point that they are hurting everyone, including the farmers. I honestly don't blame you Matt for taking advantage of the program. For certain they were going to dole that money out to someone. I'd rather have it go into your pond than to subsidize the flood insurance on some fat cat's beachfront condo. But don't get me started on federal flood insurance.
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Joined: Apr 2003
Posts: 823
Lunker
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Lunker
Joined: Apr 2003
Posts: 823 |
Well, once in a while even the gov't gets it right.
Four years ago, a neighbor (a friend of mine, even) had a large draw where a natural gas pipeline ran through the bottom. The pipe (36" high pressure) had become exposed by erosion. Natural gas people said "we can rebury it, but how 'bout if we just build you a pond in that draw over the top. Never get exposed again..."
Neighbor says "sure, why not..."
Natural gas says hire a digger, and we'll pay for it.
Neighbor does just this...and then turns around and asks NRCS for cost-share, which they were happy to do. They gave him half the cost, and Natural Gas gives him the ENTIRE amount.
Digger eventually found out about the scam and calls NRCS...they eventually got their (yours and mine) money back. Hate to say it as he's a friend...but wish they'd have prosecuted him for fraud.
Anyway, that's where the money came from for my first pond (interest free loan). It was August and they told me (NRCS) "...if you can get this done this year, the money's yours." Otherwise, the money would've gone back to the feds, and been offset the next year as money they hadn't spent, so they would've gotten $7200 less in '04. I was glad to help...
In a lifetime, the average driver will honk 15,250 times. My wife figures I'm due to die any day now...
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Joined: Apr 2003
Posts: 823
Lunker
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OP
Lunker
Joined: Apr 2003
Posts: 823 |
BTW...not trying to be controversial, but it you want to see how much any individual has received from ag subsidies in your area, go here Subsidies by state, county or name... Follow link to county, then to individual or corporation. Can even trace to individuals in the corp. This was a real eye-opener to me, and once in awhile, I check it out. Biggest whiner in the county is probably #3 on the list over the past 10 years. He's dragged out over $800,000 since '94 from my tax bucks...please don't hold my $7300 against me.
In a lifetime, the average driver will honk 15,250 times. My wife figures I'm due to die any day now...
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Joined: Feb 2006
Posts: 7
Junior Member
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Junior Member
Joined: Feb 2006
Posts: 7 |
Wow, thanks for opening my eyes! I was so excited to finally get a freebie from the gov't. NRCS is drawing up my pond plans right now for our 40 acre spot in IA where I grew up. We live in CA. Our income looks high so we get zero deductions but a cruddy ranch house costs over $600,000 here. I will talk to my accountant about the cost-share at our meeting next week to make sure it's worth it! I also heard if you use cost share, you technically must let anyone fish on your pond. ???
IA Daughter
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Joined: Jan 2006
Posts: 16,059 Likes: 278
Moderator Lunker
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Moderator Lunker
Joined: Jan 2006
Posts: 16,059 Likes: 278 |
I got some NRCS cost sharing and there was nothing about letting others come onto my property. I recall that there was a 5 year contract and the NRCS guy came by about every 6 months during that time. Also, had I sold the land during that time, I would have had to repay the NRCS for their part of the cost.
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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Joined: Apr 2003
Posts: 823
Lunker
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Lunker
Joined: Apr 2003
Posts: 823 |
Well, since it wasn't "earned" income, it was taxed at 15%, so the bill was ~ $800. I got $4500 instead of $5300, but it was still worth it, even to the wife. I have to allow no one to fish, but since IDNR gave me the fingerlings, I'm supposed to provide "adequate fishing pressure" to keep the pond from stunting out. That won't be a problem...
In a lifetime, the average driver will honk 15,250 times. My wife figures I'm due to die any day now...
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Joined: Nov 2005
Posts: 121
Lunker
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Lunker
Joined: Nov 2005
Posts: 121 |
But surely you'll let some local kids who don't have ponds come in and fish now and then, right?
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Moderated by Bill Cody, Bruce Condello, catmandoo, Chris Steelman, Dave Davidson1, esshup, ewest, FireIsHot, Omaha, Sunil, teehjaeh57
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My First
by x101airborne - 05/05/24 07:39 AM
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