TOPIC: Taxes on ginseng

I've been thinking that treating ginseng as farm income (schedule F) is the simplest way. One of the main advantages is that you don't have to show a regular profit, and can take deductions well before any anticipated profit. Our family does this for our small tree farm, where we cut timber every couple decades. TNHunter (or anyone else)- do you really report your ginseng income as business income? What led you to that approach over say a Schedule F?

vafiddler

That is a good Question! I have plants ranging fom 1-7 years old. I was planning on harvesting the 7 year old this year, but decided to hold off harvesting 4 more years until I can harvest 9,10 and 11 year olds as a mixed harvest, hoping for a better price than roots all the same age.

Perhaps the schedule f would be the best way to write off the expenses, especially the years before harvesting. I believe that the majority of the seng growers on this site have just started growing this past year or within the last several years and are not even close to the point of making a profit. But this sounds like this is something we need to check in to. If we should be writing off the expenses during the years when we do not harvest.

Thank for your input.

classicfur

vafiddler
LOL, that may not be a question TNhunter wants to answer on the world wide web

classicfur
in the past couple of years materials used to plant ginseng coincide with my landscape business so I have wrote them off on it but this year with the larger planting, I plan on using schedule F and probably will from here on out as long as I keep up the pace.

Hillhopper

classicfur
How is the shoulder by the way?

Hillhopper

Using the schedule F for writing off my seng expenses sounds like what I should be doing.

I just got the sling off of my shoulder. I hope it healed ok. The Dr. said the inside of my shoulder looks like one from a 75-80 yr old man. Too bad I'm only 50! It feels good so far. We will wait and see.

Thanks
classicfur

Classicfur,

I hope your shoulder is healed now.

What does everyone do about taxes on the wild roots you harvest and sell?


Thanks,Lenno

lenno
There again, that may be a question not many want to answer publicly lol