I disagree. When we started up a small growing and livestock business there were lots of capital expenses from walking tractors to a barn. Each of the first 3 or 4 years brought more capital expenses. Using income averaging and depreciation (all by CPA) saved us much on taxes. Are you doing this yourself without any at least consultation from a CPA? If so that may leading to you problems. And it is important to find a CPA with Sched F experience. What program/system are you using to track and organize your income and expenses? You still have time to get all the info together for this year. Good luck! Tom

I love my Accountant!!!!!!!! I pay $500 a year he does the taxes for the farm and both partners personal taxes and he takes care of any and all paperwork for the state and federal government. I just keep my bookwork straight for him to follow. He used to work for the IRS so he knows what he is doing and I dont have to worry what end is up at tax time!!!!!!!!!! Find a great accountant!