Exciting question - taxes!
For the past two years we've filed our cutflower business as a home business. However, I'm realizing we really do fall into the farming category (we currently grow about 1/3 acre of flowers on 1/2 acre, but are planning on adding another 1/2 acre in the next year into production). We sell at farmer's markets, subscriptions for residents and b&b's, and wholesale to small grocery markets.
I guess what I consider a farm is something with a fair amount of acreage - however when I look at the definitions of a farm business we definitely fit better as a farm than with a home business even though we are in a zoned rural residential area (we have about three acres).
My question is for those of you who have small operations that may or may not be zoned commercial. Do you file as a small business or a farm? Tax advice seems to say as long as you are growing a crop for profit you're a farm. I'd like some "real life" scenarios though if any of you have them. I didn't get a very clear answer from our co-op extension.
What fun to include IRS publications with all of our other seed and planting and marketing and....so on and so on readings! Getting a headache from reading too many tax booklets!
Thanks in advance,