Does a start-up farmer have any special requirements to qualify for a farmer tax exemption permit?
To qualify for an exemption permit, a start-up farmer must satisfy the following requirements: • The farmer intends to carry on agricultural production as a trade or business for at least two years after the exemption permit is issued; • The farmers gross income from agricultural production, as reported for federal income tax purposes, will be at least $2,500 in the second year or an average of at least $2,500 per year for two years after the exemption permit is issued; and • The farmers gross expenses from agricultural production, as reported for federal income tax purposes, will be at least $2,500 in the second year or an average of at least $2,500 per year for two years after the exemption permit is issued. Example: In the first year of farming, a start-up farmer had $1,500 of gross income and $3,000 of expenses from agricultural production. In the second year, the start-up farmer had $3,500 of gross income and $2,000 of expenses from agricultural production. The average gross incom
