I need to some help deciding if we want to keep a new piece of property we purchased (86 acres) under ag exemption or switch it to wildlife exemption. It is currently under 1-D-1. We have a small ranch in one part of the state that is strictly under ag and this new property is in another part of the state.
The main question I have is there any monetary differences. With our existing ranch we show income and expenses. Most things purchased for the ranch agriculturally are tax exempt. I believe the land taxes are deducted as an expense as well. Our CPA does our taxes so don't hold me to everything.
I was under the impression that with wildlife exemption you would have to pay sales taxes on products used. Example chemicals for spraying fence lines, shredding roads etc. I heard you also don't get a Texas Agricultural or Timber Registration number.
If you don't have income coming in with the wildlife exemption, can you still deduct items used, even if done to meet your management plan.
Also, can you deduct the taxes paid on the property?
If you can deduct everything just like an ag exemption it is a no brainer to switch this new property to wildlife exemption.
The main question I have is there any monetary differences. With our existing ranch we show income and expenses. Most things purchased for the ranch agriculturally are tax exempt. I believe the land taxes are deducted as an expense as well. Our CPA does our taxes so don't hold me to everything.
I was under the impression that with wildlife exemption you would have to pay sales taxes on products used. Example chemicals for spraying fence lines, shredding roads etc. I heard you also don't get a Texas Agricultural or Timber Registration number.
If you don't have income coming in with the wildlife exemption, can you still deduct items used, even if done to meet your management plan.
Also, can you deduct the taxes paid on the property?
If you can deduct everything just like an ag exemption it is a no brainer to switch this new property to wildlife exemption.
Comment