You mean like Bumbling😅 Biden and his merry band of Criminals treat farmers? I think I know what you raise on your farm, maybe ought to smoke some and realize that rosy vision.
Josh you need to get your expenses up: Utilities (power, telecom, etc) , maintenance (oil changes, replacement parts), consumables (Oil, grease, air filters), insurance costs, food (expense meals), apparel (company boots, gloves, etc), accounting & other business fees. Keep all receipts & create expense reports for it all. Also look to leverage the Qualified Business deduction. You should almost pay nothing in taxes.
Unfortunately that's what it's about - being a good consumer and keeping the markets afloat. Corporations do exactly this to avoid paying tax.. if they owe 50K at the end of the year they buy a new fleet vehicle as a write-off and increase their value with assets meanwhile the poor plebs that cant afford to pull out that 50K are the ones left paying tax as a default. Gov's crony banks and insurance companies benefit off it every time too- its a pure example of socialism how they prop up these institutions.
yep...if not for ingenuity and understanding that a farm can be a place to grow crops, critters and become a virtual playground for millions to learn and be entertained. The new diversified crop in this day and age isn't growing more squash....it's taking folks on a journey and enjoying/sharing this lifestyle!
Depretiation of every item you buy for your farm ought to wipe out all your taxable profit. Sadly, being an accountant is a vital part of anything we do. Excess gov, excess regulation, excess bureaucratic red tape and of course, excess taxes to pay for our demise…. Thanks for sharing your numbers.
to the rune of over 1/2T/ yr in wages just to keep track of all the excess tax the gov does But we let them so why r u crying U should of worked harder to get ur way Oh ya ur one of the 95% who have not say in who we get to elect Try running some one the 2 majors dont like.
@@williamwilson6499 correct. vehicals and equipment. anything used to farm. you can spred it over time or if the percentage is low enough it all to a point of lose
As a fellow small farmer, 80 acres running pasture chickens and beef, there are several things to consider. 1.) A great tax professional will more than pay for themselves. 2.) USDA has several programs that will offset costs or give cheap financing options. EQIP grants will pay for much of the infrastructure that regenerative farms rely on. 3.) I'm just going to point out that you did include labor in your expenses. 4.) USDA and FSA also give out drought relief payments. When it comes to USDA and FSA I know people don't want the government in your business but you are leaving good income on the table that is going to be paid out to someone regardless of whether you take your tax dollars back or not.
If you are American and still pay income.taxes after seeing what they do with your money then you are mentally ill. I practice what I preach. 8 years for me
@@michaeldaniel7012 I hardly think the amount of money spent on farm subsidies is what has the US in the amount of debt it is. To the point that something like 80% of the farm bill is actually SNAP.
@@DannyBowen25 No that is not correct. EQIP grants are just that grants. Drought assistance is just that, assistance. It may not be for everyone and what they are comfortable with but I gave up no rights, gave up no land to get the little bit of money that we got. You are talking about things you know nothing about obviously and are not being helpful. Talk out of knowledge not ignorance.
Josh those prices look pretty good, I took 2 bulls to Harward brothers in Turnersburg on 11/18. One weighed 350 lbs and brought $2.70 per pound and the other one weighed 255 lbs and he brought $2.97 per pound. There were some steers up there that were bringing over $3.00 per pound. So the market is improving. As far as taxes go, my profit was less than my expenses last year for the farm side of things. Which I was still working a full time job then. I just retired from my NC state job this year on Sept. 1st and just started a part time job this week. So we’ll see how the taxes go this year. Keep up the good work.
My grandparents working pen had a hard right turn into the chute. My job as a kid was always to sit on the corner post, manage the gate, and guide them around the corner and stop the jumpers. It was a 6’ tall chute but they still tried to jump it. That sweep gate would have been a lot easier.
Farming is the only true long-term American profession and industry. It worked alongside Industrialism - and two World Wars in our country...We have had a long time of peace (per se) and industrialism has fallen away (to Mexico and China) to leave us as a Services (to one another -- meaning we all just trade our money around to each other for "what" we do) driven type of capitalism...yet the brave farmer who has always had to endure is still is here. It is sad but reasonable that older farmsteads are selling their land to build housing (a one time crop). Brave and persistent hard workers are fading into history. Thanks Josh and all those who lead the way in our best and most important Agriculture Labor Force - Thank God for You All.!
Josh, there are many good comments here on how to reduce taxes. I assume you are using "cash accounting" and not accrual. two additional things to consider. 1) you can create a SEP IRA or Individual IRA and put about 20-25% of profit into it each year tax free and use it toward your retirement. 2) use profits to buy supplies that will bring you a profit next year and pass the taxes forward. For example, my old man was a brick mason. At the end of the year he would by tools, brick, mortar, and sand to reduce profits. These items would be used to make profits in the next year.
You hit the nail on the head! - I wish you could reach out to Congressman Thomas Massie - he has the heart of a farmer/rancher and has a ton of wisdom.
Massie voted against the farm bill that included SNAP benefits for poor people. What good is a farmer when people can't afford to buy his goods? massie.house.gov/news/documentsingle.aspx?DocumentID=395180
Build a tiny house in the back of your farm. I do Airbnb on my homestead and every thing becomes tax deductible as a rental. It will cost about 40 k if you build it yourself and you get crazy tax benefits on rentals. Onexkey note dont allow stays over 28 days. It prevents squatters laws from taking effect and at 28 days if they don't leave the police will push them out imedatly.
reason I built this farm is because I didn't want to be around people....heck brother, spend 40k building a farm stay and every penny earned on it is taxed to no end also! I don't want anyone here my brother.....I just don't
@@StoneyRidgeFarmer I agree with your sentiment re: no other strange people around. that said, using (NotYourTaxAdvisor) voice: let's assume you don't have very good renter acquisition skills but don't find that out for 3 years, you'd still be allowed all deductions so long as you could prove you advertized in an obscure location where people unfortunately didn't take you up on the opportunity...just saying...In 3 years you could leave the hobby of being a landlord and still have the space for your children, storage, storing the in-laws (or not) on site seasonal farm employees for the weekend to process maybe--or even to stay for a couple weeks while you actually get to have a vacation and get away from work for a bit like everyone else does, children, or your next venture into your farm stand. I'm with you on the no people thing to a degree. As Labor is the source of wealth and not $emi-$emitic $lave $hekklebucks, at least you'd be able to capture $ otherwise going to Afghanistan or Invaders & be able to afford more ammo in the short term. Additionally, you'd be able to secure your property when the US/UN/NATO wants to terminally assist you with changeable climate chicanery instead of chickenry. My 2 cents...Keep crushing o/
Thanks Josh for sharing and being transparent with your farm income numbers. I don’t see how a small family farm can be profitable without selling DTC (Direct To Consumer) and diversifying and maximizing revenue streams. Raising cattle the best way, how you’re doing it IMHO is how we do it. Regeneratively… No pesticides/herbicides in the fields, no shots in the animals nor anything unnatural in their feed. The health benefits of grass fed cattle speak for themselves and the flavor is richer and better too. I know you know this, and that’s why you’re doing it this way. It’s more for my fellow viewers of yours but feel free to add or correct me if I’m off base. Keep up the great work! Life on a farm, where work and play are the same thing. Just Say’n 🇺🇸🦅🇺🇸
I have had my own biz for over 25 years it sux everytime I have to write them a check and nothing pisses me off more than to hear some Bureaucrat say if it wasnt for the Goverment I couldn't make my living. I would suggest that you restructure your corperation if your paying 25% tax on 20K profit. There's ways to write it off or take if in a different form of income depending on if your a C, S or LLC.
My opinion, We the People are to blame for these taxes and everything else. We the People, over 2 MILLION adults let 535 people (the government) control us🤔🤔 Again my opinion
We the people with 400 millions guns controlled by 535 people composed by effeminate "men", big mouth young/middle age women and weak old dinosaurs like Nancy Pelosi and the rest. Think about that.
Careful using corral gates they can also go under them if they can get their nose under. Cows don’t like being trapped and they are big enough to make a way out
Where are all your other expenses? Insurance, Tractor and farm equipment maintenance, equipment costs, utilities, buildings, etc, etc, etc? You can't run a business without these expenses.
I agree with you Josh!! It’s so hard for a farmer to make a living now. Any type of farming it’s ridiculous how a farmer struggles to feed his family and our nation, yet they don’t get any help to offset the cost and then are taxed outrageous.
@robertlathe2165 No, I'm not saying it is. I'm just saying that's where most of our food comes from. Ideally locally grown/raised crops and livestock and/or hunting is the most sustainable and nutritious sources. Not everyone can financially afford that though. And there's a lot fewer hunters now. In MI our DNR is struggling to manage deer as a result.
@@VoidOneGamer not saying he’s feeding our nation, but in general farmers. They spend so much to make very little. Same goes for a small farmer. It’s the prices of the feed, seed, and such that hurt an then they get taxed on top of it. Yes we all pay taxes but it’s way too high. I know all to well, I live on a small farm and see the cost and then the taxes. That’s what I’m getting at and I think Josh from Stoney ridge was too
It breaks my heart to think about taxes. 40% of my income, automatically gone for taxes. Also, I see some comments about politics. Face it folks, neither side is going to lower your taxes.
Everyone is saying red this, blue that. I don’t see much of a difference. Just a choice on who you wanna pull your pants down and bend over for. They’re all politicians and we’re the livestock they’re making their money off of.
Everbody hates taxes, but...most don't think about all the benefits they received from the taxes they pay, i.e., weather forecasts/radar (NWS), air travel and shipping(FAA), farm subsidies, research(USDA and FSA), Internet developed by DOD, roads, highways, bridges(DOT) etc. The list is long, and the modern benefits are many.
Some of these are fine but if you farmed and ever witnessed some of the stupid subsidy programs and the ramifications that they caused. I can tell you some that have devastated some farmers because the government didn't have any foresight of their actions.
Thanks for sharing the post and especially for the financial details. Just out of interest, are you allowed to claim depreciation (as an expense) on your machinery, vehicles, tools, farming sheds & buildings etc? Can you claim a tax deduction for any "taxes" you've paid on items purchased during the year - things like fuel, fencing, consumables for your machinery? Most countries have a minimum income level that is tax free - is this still $12,950 yearly for a single person under 65? Does the USA allow farmers to "income average" over a period of say 5-6 years, so you can offset the losses from previous years vs the profits of current year/s = therefore only pay tax on the "average"? What about contributions towards your 401(K)?
Not all small farmers will have a side hustle (youtube, construction business, etc) but I understand the need or for at least one of the family holding down a regular job to provide supplementary income - especially in the earlier year while building up the property & stock. But I'm interested to know about the tax rules form 1 country to another. For example, have you seen how the UK govt wants to being in inheritance tax for farmers as they pass the deed from parents to children over time?
This system that you are referring to was invented byTemple Grandin. It has various names:hug box, squeeze machine, or squeeze box. There is also a fascinating movie about her, "Open the Door".
19:44 It would be a good idea to figure out the logistics and size/spacing of your setup BEFORE you build a barn. So, you are doing the right thing figuring it all out.
Taxation isn't theft if you get value for your taxes. If you aren't getting value for your taxes, you need to contact those elected peoples and express what value you should be seeing. Taxation is part of living in a society that has communal spaces, federal parks, roads, military, and a retirement program built in for the working citizens and disabled. Why we are the only ones that have to wait until 65 to get healthcare included in the taxed benefits is beyond me.
@@leelindsay5618 We shall have to disagree here. Just because a burglar gives you value after robbing your home, it doesn't justify the robbery itself. Silly reasoning. I prefer to see some things as fees as opposed to taxes but the truth is, the government takes far too much and spends the money on immoral things and then pretends like it's doing you a favour because it gave 1 % back to pay for community services. We have been brainwashed into accepting taxation and unfortunately, too few people are able to see potential alternative ways of doing things.
yep....can't build much with that little of a profit, then I build a shed and the gov't makes me pay property taxes on the darn building for the rest of my life! It's a total bummer!!!
There's got to be a whole lot of deductions he's not including, vehicles, property taxes property costs. With that type of a ranch I would be surprised if he made any money. I ranched in Montana for 20 years incorporating the ranch is also helpful. I ended up selling all of my towels and I just put the money in the stock market, dividends pay better, and obviously a lot less work, less risk also.
low input costs my friend....fences, cows, hay and grass....any profit in any business is taxed....it's taxed when you spend it, earn it and even on the things you purchase....just because you can deduct the taxes you pay on property doesn't mean you ain't spending your earnings on nothingness
@@StoneyRidgeFarmer with my Ranch I use an C Corporation ( not an S corporation) because with a C corporation it pays no taxes. All of the buildings vehicles and everything we purchase is through the S Corp, even the vehicle insurance. We don't have to pay taxes unless we physically take money from the corporation and transfer it to ourselves, in the form of a dividend. Accountants would venomously disagree with me but they are wrong. They try to push an S corp so that it's taxed on the front as a pass through to your personal taxes, but the key with this sort of business since it has so many tentacles to cost such as buildings Vehicles insurance, the net effect is you end up living on your own corporations Ranch as a ranch hand, if you take out payments for your personal use, that has to be taxed twice in the form of a dividend payment and received, but let's be honest, and the ranching business we never take money out for ourselves, everything that we buy has to do with our business. Moreover the IRS has an exemption for Social Security payments, so if you wanted to pay into that so that you could receive it later, under a farm labor exemption you would be able to do that, I just started doing it this last year. And we also lease out a portion of our property to a resort Campground, so then those lease payments go back to the corporate account. And we use a brokerage account so that we can compound the corporation money in The Brokerage using the stock market, and we don't have to pay taxes on any of this it can go from our business checking to The Brokerage as well as income from rents can come and go to The Brokerage or our accounts and as long as we keep it in those circles it remains exempt from taxes so we can grow our money tax-free, even the sales from livestock go to our checking account and then to the brokerage, and we can do all of these transactions tax-free, that's the advantage of an S corp that accountants don't seem to understand or admit, we do our own accounting and the IRS has no problem with it.
And the income that gets transferred to the brokerage goes into high yield accounts like yield max, roundtree, simplify, and a few others, they're considered risky by investment standards but not risky When comparing to cattle, I have one fun in yield Max that's about 30k, and that pays usually around $450 per week in a weekly dividend, there's other funds that pay higher but they only pay monthly. Obviously we have to pay taxes on any of that income if we take it from the corporate umbrella and transfer it to ourselves. But it ends up being a sort of mini conglomeration.
I think the calculator is broke too. $42,365-$12,080 = the $30,285, you forgot the other 3 expenses you listed. That will knocked you down another $8,800 of taxable income. Plus % of electric, % of your home for office space, uniforms, depreciation, etc. etc.
Newer viewer to your channel and absolutely enjoy it! So with all the work, time and quality in your beef. Have you considered direct to consumer beef sales? Just your thoughts on that? Keep the videos coming! Thanks.
Dang!!!! I need to move where you are. I was at the cattle auction two weeks ago, heifers were going for $3.25+ @ about 500 lbs. and steers $3.50+/- @ about 500 - 600 pounds. As far as the taxes, well this is what happens when the People forget the power of the word “no”, and forget about our history on taxes. You wanted a covered area to short… use that $20k to build it. It’s a never ending battle, your living what ranchers have been fighting the last 100+ years Good job on the profit! You have a A LOT of nice new equipment.
After 39 years being self employed doing what I loved the most as a licensed remodeling contractor I was determined to make a comfortable retirement. The first 5 years working 60 hours a week I finally made a small 4k profit. I wasn’t paying myself any wages. The 6th year I started paying myself 20k a year and was being questioned by the IRS and my Accountant for taxes was being phone called and questioned by the IRS agents . I found out the IRS are after small business owners for cheating and since OBama was President his administration was after back taxes owed All I was trying do was live the American dream creating my own business be honest and hard working give my customers a quality finished job at a very fair price. Later on I found out The IRS let the large corporations get away with tons of profits with barely paying what they actually earn in all different tax diversions that are legal. To this day the government go after the small business owners and large corps usually still don’t pay what they should. So the moral of the story is we just are buying our selves a job I guess. Pay those taxes you will never win !
my man...I don't have one, but here's the rub. I haul cattle 2-3 times per year. I can hire it done or use my stepdads trailer in most cases. Every trip costs around $300. Buying and maintaining a cattle trailer would cost me around $20k for a decent used one...with upkeep costs such as tires, tags and insurance would add up to about $300 per year. It would take more than 30 years of use on a livestock trailer for me to justify the expenditure.
@StoneyRidgeFarmer What I personally do with equipment. I buy cheap as new or used. Then. I don't buy anything with a single purpose. Example. My pickup would have been paid off in two more years. I just traded it in on a new vehicle. The new vehicle price was cheaper than what I paid for my pickup new. The interest is what is the hurt. Yet. It is what I can do with the new vehicle over the pickup. For what I need. I bought a cargo trailer van. I am like you. By myself. Yet. A son full-time at home. He is handicap. There is no need for extra seats. Yet. I got a vehicle. A box trailer or truck. A camper. It has a tow package. Three different vehicles in one. As long as I do not build it out as a camper only. Livestock trailers. They come in many different designs. Just to say. You need a trailer for different reasons. Then. A trailer design to fit all needs. Myself. My land. I have to go 145 miles one direction to get water. A closed in vehicle with heat makes sense. 100 miles to a major lumber store. Instead of a trailer. The van makes sense. 4x10x6 foot space to carry what I need that is out of the weather. To say. A trailer doesn't make sense. Doesn't fit many needs. I do get it. I understand perfectly. It's like buying a camper and never using it. Yet. Trailer and cash makes taxes cheap. My flatbed. That mainly sits. The taxes I pay on it. It doesn't matter for myself if it sits then being used all of the time. I need it. I have it. I have priced those trailers. Some are the same price as a new small car. I get what you're saying. It's a thought.
Brother....why are you still buying cars (consumer items) on credit....and trading!! I wanna stop all this right here....stop going into debt my brother....this car debt thought process is what keeps us in clock punching prison.....I have a little cargo trailer that I use, but I don't need a stock trailer my friend. My words of encouragement are right here: Stop buying what we don't need...get the heck out of debt and never do it again! I've been out of auto debt for 4 years now and what a relief! Was able to pay off the whole farm this June!! Get the heck out of debt my brother and don't go back! Debt is prison!!!
@StoneyRidgeFarmer I have land. Yet. From here to there is 935 one way. Today you can't pay people to do work for you and if they do, it's expensive. The number one problem is water. To bulk water. The only guy will not answer the phone. The closest town stopped selling it. The next closest town is 145 miles away. Meaning. I have to go get my own. In southern Missouri. It just got below 20F. Like here. You have to travel for building supplies. A pickup and rain doesn't mix. Plus I have to move. Right now. Today. There isn't a road on my land. I have a small camper. No way to get it on the land or even turn it around. Land location. Meaning. Start the land sleeping in a pickup or a tent. The van made more sense. Of Saturday. Checking the mail. What makes sense now is. I should have kept the pickup. Paid it off. Sell everything. Keep my Jeep. Buy a condo near the ocean. Prices goes up. Pay drops. As of Saturday. I can say whoops. I messed up. The part on my pay. Mine and my son. On the SS part. We took a good hit in loss of pay. I shouldn't have even bought the land. I got it January 14th. 2020. Still making payments. This house I rent from my dad. My son. Handicap. All of his life. Lives with me all of his life. He is 24. Took the biggest hit. On SSI. He can only afford now two weeks of food for himself. That's it. I can't get a part time job. He is a full time job. Thanks to the Government. I messed up mega huge in buy the van now. The van is cheap. The interest is expensive. Now what. I don't know.
Stove pipe through side wall means 90 degree turn that obstructs the flow of exhaust. This results is incomplete burn. Go straight up through the roof.
It’d be interesting to see some expert input. The majority we’ve had is through the wall and 90deg to above the roof as well. With metal roofing is it still worse to go through roof than out the wall? Without info to prove otherwise, I’d go through wall and use a T instead of an elbow as well. But I’m not a pro by any means.
@JamesBlazen no. With a properly constructed set up that's tight the draft will work perfectly. 30 years of experience with chimneys for wood and coal
Watch the movie Temple Grandin (2010). This is how the concept of your cattle movement was created. Also what about your Ag exemption? Didn't see that factored in.
lol...what ag exemption? In nc you have to prove 10,000 worth of sales per year in order to qualify..this would be my first year to qualify...and that's only for sales tax...heck I've already bought everything I need. Here's my video with Temple Grandin ...I think you'll like it...I flew to Colorado to see her: ua-cam.com/video/wOvEo_YXLdE/v-deo.html
@@StoneyRidgeFarmer So awesome that you got to meet her and interview her. N.C Ag rules seem not for the small or medium farmers. Would a Conditional Farmer Exemption even help. The rules are way different here in TX. Good Luck.
had a conditional exemption...it expired. Next year I'll have a full exemption, but we're talking about pennies of savings since I have most of my equipment and do low input farming. It's almost not worth filing the paperwork
What am i missing on your math $42,365 sales + $18,800 expenses - $23,565 = $18,080 labor - $11,485 = (total) $20,285 why ? (Total) $8,800 that's the fuel, s.a., lime cost
That’s why we need a flat tax. When it comes to your animals in some cases you could trade instead of sale. Like I traded my bull calf’s off for heifers and used them as replacement heifers. No taxes that way.
well...we gotta pay for the farm brother.....we make heifers here and dealing with people "trading" is a huge hassle. The cattle have to pay for the inputs on the land and fencing/tractors/fuel/seed/hay. Trading won't make that happen
Thanks so much for posting these instructive videos. I recently acquired over 50 acres of agriculturally zoned property that I'd like to raise cows, hogs, and chickens based on regenerative practices. I understand that any profits that I may earn some will be taxed, and I really don't have a problem with it as I'm grateful to live in a country that affords me a good standard of living. I've traveled a good bit internationally and I don't think most Americans know just how blessed they are. I just ask that tax dollars be used effectively and efficiently.
Tax on 60k is 12%, less than 8k. With a standard deduction of 29,200$ (married) and with the costs you mentioned for farm management costs.. I see no reason you would ever owe taxes You must make quite a bit of money from you tube, side hustle, another business to owe taxes.. Just sayin’ Loved the video!! It was great!! We will be starting cattle soon.
my man...anyone that earns an income pays taxes...we pay them coming, going and sitting...meaning income tax, sales tax, fuel tax and property tax. It's pretty sad
I keep a ledger and a file of all my receipts. I also write off the mileage. Your equipment, improvements, fence are all write-offs. This sounds like click bait because your depreciation schedule should be fine. Your new shop?
We're talking 100% farm inputs v/s farm outputs. Fuel, Feed and soil amendments v/s cattle sales. This really isn't a 100% breakdown of every single penny spent on the farm. I keep records and most certainly have an accountant that I work with on every penny spent...but the long and short of it all is that for every $100 made......$10-30 goes to the gov't. Where there was once nothing....I made something...and that something is punishable by tax. Tax when I earn it, tax when I own it and tax when I spend it. That's the facts my friend. Can't write off a fence built in 2020 in the year 2024. Sadly enough
land taxes: Personal property tax not biz, machines are all paid for, electric bill in the shop is $35 per month....we just don't have many expenses right now....I'm guessing you saw the most recent vid how we put some money back into the land....spent about $20k total on the pastures/lime and such
Check out Temple Grinder. The last name may be misspelled. Her story is on you tube. I read her story before you tube. She was autistic and was a big name in agriculture.I belive she was from Texas. It educational.
Hopefully with our new president in office your margins will improve high fuel prices come down and all it increases price of. Also spending comes down like with ourselves only what we can pay back in due time. God lead you in all you do and to your good future in farm direction and to a great love in your home. All the best blessings, David
I'm curious about what happens to your cattle after you sell them, do they all get eaten or are they used for breading, could be a good video to meet the new owners?
cattle go to the sale barn, sometimes purchased by large cattle operations, feed lots or individuals. The whole reason behind taking them to the sale barn is to sell them anonymously v/s to individuals. Each buyer has a unique id number, but I honestly don't want to know who purchases them. Just like selling a puppy to someone....3 years later they'll call you back and try to sue ya because the dog bit someone...the sale barn takes away that liability....it's unfortunate to have to think defensively like this isn't it?
we let them wean naturally. They are all at weaning age so weaning them to the sale barn is what I do...it works great and no animals are out tearing up fences trying to get to their young
First, set up a health savings account tax-free. Put the max in every year. Put the farm in an LLC. Everything you spend, though the LLC, is deductible. Put all your vehicles in the LLC. Keep track of mileage and fuel and maintenance. You can run 7 years not making a profit and pay nothing.
Thank you for the information, Josh!! it is great information and helpful to us with our first generation ranch... Learned a lot from you!! much thanks - Jay
Another channel just posted that he's made $81K on 1/3 acre garden farming. Maybe diversify to a bit of something else depending upon the population around you.
No feed, mineral, depreciation of cattle/equipment, supplies, repairs/ maintenance and vaccines. Vehicle expense to haul cattle or get supplies? I suspect your expenses are higher than you showed on your video.
This was a really interesting show, Josh. Farming and Ranching margins are tight, especially with increasing fuel costs. I work retail in California, and I see the price of beef we sell...And I wonder how the "little guys" are doing it out there. Thanks for the education, Josh. I appreciate your show and I'm learning things. Keep up the great work!
yep...don't have kids, also don't get a child tax credit....which if ya think about it...who's using up the infrastructure, schools, roads, parks and bridges? If this were fair folks with children should have to put more in the pot to pay for the services they use right? You and I both know that we pay tax when we earn, when we spend and property tax on what we bought. It's squandered away by the gov't and wasted. When a hammer cost $500 we've got a problem. Our gov't is very wasteful and it's time we stopped it. Spending tax payers hard earned money on wasteful enterprises and political gains in other countries...raise your hand if you think the gov't isn't wasteful
This was really helpful. I'm 4 years into growing a meat goat operation on a mostly wooded 170 acre homestead in KY. Profit margins go up with head numbers, but so do infrastructure and feed requirements. It's a fine line you just don't understand unless you live it. I want to expand some fencing into new areas, but that costs money. I refuse to take on debt to grow my farm. That's a good way to lose everything. I've also avoided USDA and EQIP money because I don't want the oversight into my farm. Patience and a lot of hard work, slow and steady wins the race.
You mean this Temple Grandin? ua-cam.com/video/wOvEo_YXLdE/v-deo.html That's what we're doing here my friend....before the first piece of cattle handling equipment was ever installed....watch the vid you'll love it!
I was checking into my retirement. They are taking 20 % off top. $75 for every action set up. So went to 401k roth wanted to take out to pay off home equity loan they said they pull partial payment out of taxable even if roth could handle full amount so still have to pay taxes plus the $75. I feel dishonnest so changed what was taking out of check to just what company matched.
you might consider that as income tax from salary. other options are paying salary for yourself and paying taxes from that or as you sayed using the money on farm.
It could, be worse - you could be in the UK. Anything under about 1,000 acres is just not viable here! We break even at best and now the government wants to take our hard-fought-for tax breaks away. Prices in the shops are so low that we get nothing for our efforts. We used to get EU subsidies and they were what we lived on - well they took that away with Brexit.
I could see if you’re releasing them out of that red thing I forget what you call it and they come out that side door. They should be able to come right out that corner and go right back into the pasture. There shouldn’t be a block point but I could also see that you would wantto not allow cows to get in there from the pasture
We definitely need to trim the size of our government back to only essentials. Another problem when our government gets too big and bloated, they perpetually grow themselves costing us more in $ and personal liberty. Definitely feel our founding fathers would be reminding us, they fought and bled so we didn't have to live under bloated government that constantly removes individual liberties.
oh Good Lord, don't get trapped in that thing! HELP!! *Smart phone on kitchen counter... Make sure to Greeze, Grease, that swing gate, that noise would scare them? wooo!!
We had a cow get caught between the outer edge of the gate and the side of the squeeze chute. Took a couple of hours and finally a cutting torch to get her out.
@@franciscodanconia4324 That sounds like a mess. One time I put tire chains Ford Taurus (front wheel Drive), but tied in wrapped it around break cable. *bleep happens!
Government always has their hand out. I've always been told you can't figure labor costs into farming and make it a worthwhile profession. Fact is you just have to love it and it does seem like you do.. If you love what you do; you will never work a day in your life
Josh, everything just plain cost too much. Thank goodness you love what you do because there just isn't any real money in it. My uncle and aunt own a cattle farm and as they say it's a lifestyle. It is rewarding in ways other than monetarily. Sure does beat working in the ER or being chained to a desk! As far as taxes go.... you should be paying yourself. Talk to your accountant.
Having some difficulty understanding your profit figures. Your gross profit (sales) is $42365, but your net taxable profit should surely be $42365 less costs and expenses, $30880, so net taxable profit is $11485?
lets not forget what services and infrastructure are provided for that money. the very road and bridges that are needed to transport your project to market. the inspectors of your products. the scholls that help educate you kids or grandchildren. the military and police that help protect our country and your land. no one likes to pay taxes but without the roads and services the government provides you would have to pay build your own roads, etc. there are thousands of services that help keep all americans safe and someone has to pay for them and make it easier for farmers and all producers to get their final products to market. Taxes are the price we pay to life in this great country and you should not complain about taxes. every dollar you spend in taxes helps improve this country and any patriot should be proud to help contribute to improving this country.
no kids, served in the military, former law enforcement here...and I understand the monumental amount of waste our gov't creates. "Inspectors of my prouducts? we need more regulations huh? My friend...if our gov't was ran properly there's no way we'd be the most wealthy nation on earth and still harbor the most debt...how bout this...I don't mind chipping in and paying my share....but I do mind it being handed to beurocrats and lazy people that won't work...or to other countries for political reasons. Our nation's people work and watch the sweat of our brow being handed to those who won't work...or foreign countries. My fair share doesn't mean that I should be taxed on everything I earn, spend and own...it's out of hand brother...would you agree?
@@StoneyRidgeFarmer i know there is waste and abuse in our system. as far as foreign aid is concerned i believe it is necessary. as far as being in debt this because of a change in tax and economic philosophy over the last 40 years. supply side economics and the tax structure that comes with it has caused the income inequality and and national debt to rise. it has been a 40 year experiment that has failed and yet republicans still cling to and push it. trump plans on giving tax cut that benefits the rich and cutting corporate taxes to 15% which will reduce revenue further while making cuts to vet benefits and social security and medicare. its is weird that politicians have divided the middle and lower classes so much so that half of them are fighting to protect the ultra rich and big corporations while choosing to take away benefits that are necessary to the survival of everyone else. this experiment has turned this country into an oligarchy and trumps new administration will be filled. with them
sorry...done with this....we could have a conversation without bringing in politics....now that you've waived the political flag...I'm simply out. I'm not here to pick sides, I'm out. Turn off that agenda based fake news.....all of them...fox, cnn, msnbc....all of them...let's start living our lives without this horrible dividing influence in our faces every day.
@@StoneyRidgeFarmer politics is what determines taxes so if you have a problem with taxes then you have to talk about politics. be it local, state, or national. you are the one that chose to bring up taxes in your video not me. you could have opted not to bring it up considering that it had nothing to do with the content of your video. you stated that you hate taxes so do most people but is necessary. i hate working for a living but i found it necessary to do for over 40 years before i retired.
You need to vote blue on all levels. They care about these issues and willing to listen , learn and do something! GOP only care re the mega rich
You do understand… people who were said to, “support” Mrs. Emhoff received kickbacks!?
You mean like Bumbling😅 Biden and his merry band of Criminals treat farmers? I think I know what you raise on your farm, maybe ought to smoke some and realize that rosy vision.
Yea...check out how your Blue Governor and Blue Prez helped out Western North Carolina after Helene...no thanks!!!
Wow......never heard them even mention saving the middle class....only hiring more IRS agents is what I heard...didn't you?
I would say that @francineshea4723 is bought and paid for by the DNC and/ or is in a cult
Josh you need to get your expenses up: Utilities (power, telecom, etc) , maintenance (oil changes, replacement parts), consumables (Oil, grease, air filters), insurance costs, food (expense meals), apparel (company boots, gloves, etc), accounting & other business fees. Keep all receipts & create expense reports for it all. Also look to leverage the Qualified Business deduction. You should almost pay nothing in taxes.
Unfortunately that's what it's about - being a good consumer and keeping the markets afloat.
Corporations do exactly this to avoid paying tax.. if they owe 50K at the end of the year they buy a new fleet vehicle as a write-off and increase their value with assets meanwhile the poor plebs that cant afford to pull out that 50K are the ones left paying tax as a default. Gov's crony banks and insurance companies benefit off it every time too- its a pure example of socialism how they prop up these institutions.
Also look at SEP or similar retirement account, after tax may be better, but traditional reduces income now.
Exactly what I was going say. You should have done your research about this kind of stuff before you started, you are looking at 0 taxes my friend.
That cattle master system should boost his expenses!! I look around the video and there is a ton of $$$ invested.
If not for UA-cam, Stoney Ridge Farm would still be a dream.
yep...if not for ingenuity and understanding that a farm can be a place to grow crops, critters and become a virtual playground for millions to learn and be entertained. The new diversified crop in this day and age isn't growing more squash....it's taking folks on a journey and enjoying/sharing this lifestyle!
Depretiation of every item you buy for your farm ought to wipe out all your taxable profit. Sadly, being an accountant is a vital part of anything we do. Excess gov, excess regulation, excess bureaucratic red tape and of course, excess taxes to pay for our demise…. Thanks for sharing your numbers.
Depretiation?
to the rune of over 1/2T/ yr in wages just to keep track of all the excess tax the gov does
But we let them so why r u crying
U should of worked harder to get ur way
Oh ya ur one of the 95% who have not say in who we get to elect
Try running some one the 2 majors dont like.
Bad Accountant, LOL, Didn't factor in the AG exemption he should be getting.
@@williamwilson6499 correct. vehicals and equipment. anything used to farm. you can spred it over time or if the percentage is low enough it all to a point of lose
I have been cattle ranching and I wish you luck , the way you are doing it I feel you are broke 😊
As a fellow small farmer, 80 acres running pasture chickens and beef, there are several things to consider.
1.) A great tax professional will more than pay for themselves.
2.) USDA has several programs that will offset costs or give cheap financing options. EQIP grants will pay for much of the infrastructure that regenerative farms rely on.
3.) I'm just going to point out that you did include labor in your expenses.
4.) USDA and FSA also give out drought relief payments. When it comes to USDA and FSA I know people don't want the government in your business but you are leaving good income on the table that is going to be paid out to someone regardless of whether you take your tax dollars back or not.
Why farm the land when you can farm the government, no wonder why we are $35 trillion in debt!
That isnt paid out for free.. you give up your rights to access to the land to the government. They own you for that money.
If you are American and still pay income.taxes after seeing what they do with your money then you are mentally ill. I practice what I preach. 8 years for me
@@michaeldaniel7012 I hardly think the amount of money spent on farm subsidies is what has the US in the amount of debt it is. To the point that something like 80% of the farm bill is actually SNAP.
@@DannyBowen25 No that is not correct. EQIP grants are just that grants. Drought assistance is just that, assistance. It may not be for everyone and what they are comfortable with but I gave up no rights, gave up no land to get the little bit of money that we got. You are talking about things you know nothing about obviously and are not being helpful.
Talk out of knowledge not ignorance.
Josh those prices look pretty good, I took 2 bulls to Harward brothers in Turnersburg on 11/18. One weighed 350 lbs and brought $2.70 per pound and the other one weighed 255 lbs and he brought $2.97 per pound. There were some steers up there that were bringing over $3.00 per pound. So the market is improving. As far as taxes go, my profit was less than my expenses last year for the farm side of things. Which I was still working a full time job then. I just retired from my NC state job this year on Sept. 1st and just started a part time job this week. So we’ll see how the taxes go this year. Keep up the good work.
My grandparents working pen had a hard right turn into the chute. My job as a kid was always to sit on the corner post, manage the gate, and guide them around the corner and stop the jumpers. It was a 6’ tall chute but they still tried to jump it. That sweep gate would have been a lot easier.
It's good to see Buddy happy to get up and go for a run. I know he's hurting but he still wants to be out with Dad. He is such a good boy.❤
Lube that sweep gate. That loud squeal spooks my cattle. Live your videos!
You should be a politician and you could start off broke and come out a magical billionaire.
lol....I guess so huh
Congratulations on a profitable year! Well earned
Farming is the only true long-term American profession and industry. It worked alongside Industrialism - and two World Wars in our country...We have had a long time of peace (per se) and industrialism has fallen away (to Mexico and China) to leave us as a Services (to one another -- meaning we all just trade our money around to each other for "what" we do) driven type of capitalism...yet the brave farmer who has always had to endure is still is here. It is sad but reasonable that older farmsteads are selling their land to build housing (a one time crop). Brave and persistent hard workers are fading into history. Thanks Josh and all those who lead the way in our best and most important Agriculture Labor Force - Thank God for You All.!
Josh, there are many good comments here on how to reduce taxes. I assume you are using "cash accounting" and not accrual. two additional things to consider. 1) you can create a SEP IRA or Individual IRA and put about 20-25% of profit into it each year tax free and use it toward your retirement. 2) use profits to buy supplies that will bring you a profit next year and pass the taxes forward. For example, my old man was a brick mason. At the end of the year he would by tools, brick, mortar, and sand to reduce profits. These items would be used to make profits in the next year.
You hit the nail on the head! - I wish you could reach out to Congressman Thomas Massie - he has the heart of a farmer/rancher and has a ton of wisdom.
Massie voted against the farm bill that included SNAP benefits for poor people. What good is a farmer when people can't afford to buy his goods? massie.house.gov/news/documentsingle.aspx?DocumentID=395180
Build a tiny house in the back of your farm. I do Airbnb on my homestead and every thing becomes tax deductible as a rental. It will cost about 40 k if you build it yourself and you get crazy tax benefits on rentals. Onexkey note dont allow stays over 28 days. It prevents squatters laws from taking effect and at 28 days if they don't leave the police will push them out imedatly.
reason I built this farm is because I didn't want to be around people....heck brother, spend 40k building a farm stay and every penny earned on it is taxed to no end also! I don't want anyone here my brother.....I just don't
@@StoneyRidgeFarmerAmen Brother!
@@StoneyRidgeFarmer I agree with your sentiment re: no other strange people around. that said, using (NotYourTaxAdvisor) voice: let's assume you don't have very good renter acquisition skills but don't find that out for 3 years, you'd still be allowed all deductions so long as you could prove you advertized in an obscure location where people unfortunately didn't take you up on the opportunity...just saying...In 3 years you could leave the hobby of being a landlord and still have the space for your children, storage, storing the in-laws (or not) on site seasonal farm employees for the weekend to process maybe--or even to stay for a couple weeks while you actually get to have a vacation and get away from work for a bit like everyone else does, children, or your next venture into your farm stand.
I'm with you on the no people thing to a degree. As Labor is the source of wealth and not $emi-$emitic $lave $hekklebucks, at least you'd be able to capture $ otherwise going to Afghanistan or Invaders & be able to afford more ammo in the short term. Additionally, you'd be able to secure your property when the US/UN/NATO wants to terminally assist you with changeable climate chicanery instead of chickenry.
My 2 cents...Keep crushing o/
Thanks Josh for sharing and being transparent with your farm income numbers. I don’t see how a small family farm can be profitable without selling DTC (Direct To Consumer) and diversifying and maximizing revenue streams.
Raising cattle the best way, how you’re doing it IMHO is how we do it. Regeneratively… No pesticides/herbicides in the fields, no shots in the animals nor anything unnatural in their feed. The health benefits of grass fed cattle speak for themselves and the flavor is richer and better too. I know you know this, and that’s why you’re doing it this way. It’s more for my fellow viewers of yours but feel free to add or correct me if I’m off base. Keep up the great work! Life on a farm, where work and play are the same thing. Just Say’n 🇺🇸🦅🇺🇸
like the channel looking to start some cattle myself keep up the hard work
I have had my own biz for over 25 years it sux everytime I have to write them a check and nothing pisses me off more than to hear some Bureaucrat say if it wasnt for the Goverment I couldn't make my living. I would suggest that you restructure your corperation if your paying 25% tax on 20K profit. There's ways to write it off or take if in a different form of income depending on if your a C, S or LLC.
im sure Temple grandin would advocate oiling your moving bits... Wow the squeek hahaha
You got some good ideas. I like what you do
Appreciate the feedback!
Clippity clop and belly rubs, doesn't get any better. Thanks Josh for the education.
Hey Josh thank you for the video woo
Your voice is so captivating, and your style is relatable. Love watching your content!
Thank you so much!!
My opinion, We the People are to blame for these taxes and everything else. We the People, over 2 MILLION adults let 535 people (the government) control us🤔🤔
Again my opinion
thats why canada hope dont agree high 25% thiff or canada be going be sharing with europen and austriliaand u.k
We the people with 400 millions guns controlled by 535 people composed by effeminate "men", big mouth young/middle age women and weak old dinosaurs like Nancy Pelosi and the rest. Think about that.
Careful using corral gates they can also go under them if they can get their nose under. Cows don’t like being trapped and they are big enough to make a way out
Where are all your other expenses? Insurance, Tractor and farm equipment maintenance, equipment costs, utilities, buildings, etc, etc, etc? You can't run a business without these expenses.
Nice video, keep up the good work.
The government has to get out of ours lives.
My grandpa had a farm my whole life. He had a timber operation that paid for the farm.
D.O.G.E. is going to make big cuts and help the farmers hopefully.
Oh give me a break
they are going to make big cuts in the subsidies they give to small farmers but the will not touch the subsidies they give to big oil.
Yeah right! 😂 you’ll get what you voted for. We tried to tell you!
@@tamlynn786 I hope we do. You should too.
Hope someone is keeping track of how much better off we’ll be.
Great video and an awesome haul.
I agree with you Josh!! It’s so hard for a farmer to make a living now. Any type of farming it’s ridiculous how a farmer struggles to feed his family and our nation, yet they don’t get any help to offset the cost and then are taxed outrageous.
Factory farms feed the country.
@VoidOneGamer : But it is questionable what they feed their animals for quick growth to get them to harvesting sooner. Is it healthy for us humans?
@robertlathe2165 No, I'm not saying it is. I'm just saying that's where most of our food comes from. Ideally locally grown/raised crops and livestock and/or hunting is the most sustainable and nutritious sources. Not everyone can financially afford that though. And there's a lot fewer hunters now. In MI our DNR is struggling to manage deer as a result.
@@VoidOneGamer not saying he’s feeding our nation, but in general farmers. They spend so much to make very little. Same goes for a small farmer. It’s the prices of the feed, seed, and such that hurt an then they get taxed on top of it. Yes we all pay taxes but it’s way too high. I know all to well, I live on a small farm and see the cost and then the taxes. That’s what I’m getting at and I think Josh from Stoney ridge was too
It breaks my heart to think about taxes. 40% of my income, automatically gone for taxes. Also, I see some comments about politics. Face it folks, neither side is going to lower your taxes.
One side does lower taxes.
Everyone is saying red this, blue that. I don’t see much of a difference. Just a choice on who you wanna pull your pants down and bend over for. They’re all politicians and we’re the livestock they’re making their money off of.
I finally found how they made the Jurassic Park T-Rex roar noise at 5:00
Your welcome.
bhahhahahhaha....that's awesome!! I need this kinda humor in my life!
Everbody hates taxes, but...most don't think about all the benefits they received from the taxes they pay, i.e., weather forecasts/radar (NWS), air travel and shipping(FAA), farm subsidies, research(USDA and FSA), Internet developed by DOD, roads, highways, bridges(DOT) etc. The list is long, and the modern benefits are many.
Some of these are fine but if you farmed and ever witnessed some of the stupid subsidy programs and the ramifications that they caused. I can tell you some that have devastated some farmers because the government didn't have any foresight of their actions.
Thanks for sharing the post and especially for the financial details. Just out of interest, are you allowed to claim depreciation (as an expense) on your machinery, vehicles, tools, farming sheds & buildings etc? Can you claim a tax deduction for any "taxes" you've paid on items purchased during the year - things like fuel, fencing, consumables for your machinery? Most countries have a minimum income level that is tax free - is this still $12,950 yearly for a single person under 65? Does the USA allow farmers to "income average" over a period of say 5-6 years, so you can offset the losses from previous years vs the profits of current year/s = therefore only pay tax on the "average"? What about contributions towards your 401(K)?
Not all small farmers will have a side hustle (youtube, construction business, etc) but I understand the need or for at least one of the family holding down a regular job to provide supplementary income - especially in the earlier year while building up the property & stock. But I'm interested to know about the tax rules form 1 country to another. For example, have you seen how the UK govt wants to being in inheritance tax for farmers as they pass the deed from parents to children over time?
This system that you are referring to was invented byTemple Grandin. It has various names:hug box, squeeze machine, or squeeze box. There is also a fascinating movie about her, "Open the Door".
ua-cam.com/video/wOvEo_YXLdE/v-deo.html here's my video interview with Temple Grandin from a few years back
19:44 It would be a good idea to figure out the logistics and size/spacing of your setup BEFORE you build a barn. So, you are doing the right thing figuring it all out.
I think so too.....figuring out the best system for working the animals first....then building infrastructure around it!
@@StoneyRidgeFarmer Excellent plan! :)
Was it Susie, or Sweetie who was culled? Also...taxation is theft, in my humble opinion.
actually both of them stayed...I didn't have the heart to take them
Taxation isn't theft if you get value for your taxes. If you aren't getting value for your taxes, you need to contact those elected peoples and express what value you should be seeing. Taxation is part of living in a society that has communal spaces, federal parks, roads, military, and a retirement program built in for the working citizens and disabled. Why we are the only ones that have to wait until 65 to get healthcare included in the taxed benefits is beyond me.
@@leelindsay5618 We shall have to disagree here. Just because a burglar gives you value after robbing your home, it doesn't justify the robbery itself. Silly reasoning. I prefer to see some things as fees as opposed to taxes but the truth is, the government takes far too much and spends the money on immoral things and then pretends like it's doing you a favour because it gave 1
% back to pay for community services. We have been brainwashed into accepting taxation and unfortunately, too few people are able to see potential alternative ways of doing things.
@@leelindsay5618no, it’s theft. Stop paying them and see what happens. If you are threatened will jail or death, is that voluntary?
Josh,put some of that money into the shed for running the cattle through the squeeze Shute 😮😊❤
yep....can't build much with that little of a profit, then I build a shed and the gov't makes me pay property taxes on the darn building for the rest of my life! It's a total bummer!!!
You need to count in your equipment depreciation... that will take care of most if not all of the $20k profit."
There's got to be a whole lot of deductions he's not including, vehicles, property taxes property costs. With that type of a ranch I would be surprised if he made any money. I ranched in Montana for 20 years incorporating the ranch is also helpful. I ended up selling all of my towels and I just put the money in the stock market, dividends pay better, and obviously a lot less work, less risk also.
Depreciation on the barndo too. Plus he had the land clearing expenses out back of the bardo this year.
low input costs my friend....fences, cows, hay and grass....any profit in any business is taxed....it's taxed when you spend it, earn it and even on the things you purchase....just because you can deduct the taxes you pay on property doesn't mean you ain't spending your earnings on nothingness
@@StoneyRidgeFarmer with my Ranch I use an C Corporation ( not an S corporation) because with a C corporation it pays no taxes. All of the buildings vehicles and everything we purchase is through the S Corp, even the vehicle insurance. We don't have to pay taxes unless we physically take money from the corporation and transfer it to ourselves, in the form of a dividend. Accountants would venomously disagree with me but they are wrong. They try to push an S corp so that it's taxed on the front as a pass through to your personal taxes, but the key with this sort of business since it has so many tentacles to cost such as buildings Vehicles insurance, the net effect is you end up living on your own corporations Ranch as a ranch hand, if you take out payments for your personal use, that has to be taxed twice in the form of a dividend payment and received, but let's be honest, and the ranching business we never take money out for ourselves, everything that we buy has to do with our business. Moreover the IRS has an exemption for Social Security payments, so if you wanted to pay into that so that you could receive it later, under a farm labor exemption you would be able to do that, I just started doing it this last year. And we also lease out a portion of our property to a resort Campground, so then those lease payments go back to the corporate account. And we use a brokerage account so that we can compound the corporation money in The Brokerage using the stock market, and we don't have to pay taxes on any of this it can go from our business checking to The Brokerage as well as income from rents can come and go to The Brokerage or our accounts and as long as we keep it in those circles it remains exempt from taxes so we can grow our money tax-free, even the sales from livestock go to our checking account and then to the brokerage, and we can do all of these transactions tax-free, that's the advantage of an S corp that accountants don't seem to understand or admit, we do our own accounting and the IRS has no problem with it.
And the income that gets transferred to the brokerage goes into high yield accounts like yield max, roundtree, simplify, and a few others, they're considered risky by investment standards but not risky When comparing to cattle, I have one fun in yield Max that's about 30k, and that pays usually around $450 per week in a weekly dividend, there's other funds that pay higher but they only pay monthly. Obviously we have to pay taxes on any of that income if we take it from the corporate umbrella and transfer it to ourselves. But it ends up being a sort of mini conglomeration.
I think the calculator is broke too. $42,365-$12,080 = the $30,285, you forgot the other 3 expenses you listed. That will knocked you down another $8,800 of taxable income. Plus % of electric, % of your home for office space, uniforms, depreciation, etc. etc.
Newer viewer to your channel and absolutely enjoy it! So with all the work, time and quality in your beef. Have you considered direct to consumer beef sales? Just your thoughts on that? Keep the videos coming! Thanks.
I say stove pipe out the wall. The hole is somewhat protected by the overhang
Thanks for sharing and taking us along.
Dang!!!! I need to move where you are. I was at the cattle auction two weeks ago, heifers were going for $3.25+ @ about 500 lbs. and steers $3.50+/- @ about 500 - 600 pounds.
As far as the taxes, well this is what happens when the People forget the power of the word “no”, and forget about our history on taxes.
You wanted a covered area to short… use that $20k to build it. It’s a never ending battle, your living what ranchers have been fighting the last 100+ years
Good job on the profit! You have a A LOT of nice new equipment.
After 39 years being self employed doing what I loved the most as a licensed remodeling contractor
I was determined to make a comfortable retirement. The first 5 years working 60 hours a week I finally
made a small 4k profit. I wasn’t paying myself any wages. The 6th year I started paying myself 20k
a year and was being questioned by the IRS and my Accountant for taxes was being phone called and questioned
by the IRS agents . I found out the IRS are after small business owners for cheating and since OBama
was President his administration was after back taxes owed All I was trying do was live the American
dream creating my own business be honest and hard working give my customers a quality finished job at a very fair price. Later on I found out The IRS let the large corporations get away with tons of profits with barely paying what they actually earn in all different tax diversions that are legal.
To this day the government go after the small business owners and large corps usually still don’t pay
what they should. So the moral of the story is we just are buying our selves a job I guess.
Pay those taxes you will never win !
Happy Thanksgiving !!!
🌹🌹🌹🌹🌹
Same to you!
You will set yours up different ways to work out for you. I know I did mine that way found one way that worked out for my use.
Thanks for the information. My opinion on the $20,000. Your own cattle trailer. I don't remember if or not you have one.
my man...I don't have one, but here's the rub. I haul cattle 2-3 times per year. I can hire it done or use my stepdads trailer in most cases. Every trip costs around $300. Buying and maintaining a cattle trailer would cost me around $20k for a decent used one...with upkeep costs such as tires, tags and insurance would add up to about $300 per year. It would take more than 30 years of use on a livestock trailer for me to justify the expenditure.
@StoneyRidgeFarmer What I personally do with equipment. I buy cheap as new or used. Then. I don't buy anything with a single purpose. Example. My pickup would have been paid off in two more years. I just traded it in on a new vehicle. The new vehicle price was cheaper than what I paid for my pickup new. The interest is what is the hurt. Yet. It is what I can do with the new vehicle over the pickup. For what I need. I bought a cargo trailer van. I am like you. By myself. Yet. A son full-time at home. He is handicap. There is no need for extra seats. Yet. I got a vehicle. A box trailer or truck. A camper. It has a tow package. Three different vehicles in one. As long as I do not build it out as a camper only. Livestock trailers. They come in many different designs. Just to say. You need a trailer for different reasons. Then. A trailer design to fit all needs. Myself. My land. I have to go 145 miles one direction to get water. A closed in vehicle with heat makes sense. 100 miles to a major lumber store. Instead of a trailer. The van makes sense. 4x10x6 foot space to carry what I need that is out of the weather. To say. A trailer doesn't make sense. Doesn't fit many needs. I do get it. I understand perfectly. It's like buying a camper and never using it. Yet. Trailer and cash makes taxes cheap. My flatbed. That mainly sits. The taxes I pay on it. It doesn't matter for myself if it sits then being used all of the time. I need it. I have it. I have priced those trailers. Some are the same price as a new small car. I get what you're saying. It's a thought.
Brother....why are you still buying cars (consumer items) on credit....and trading!! I wanna stop all this right here....stop going into debt my brother....this car debt thought process is what keeps us in clock punching prison.....I have a little cargo trailer that I use, but I don't need a stock trailer my friend. My words of encouragement are right here: Stop buying what we don't need...get the heck out of debt and never do it again! I've been out of auto debt for 4 years now and what a relief! Was able to pay off the whole farm this June!! Get the heck out of debt my brother and don't go back! Debt is prison!!!
@StoneyRidgeFarmer I have land. Yet. From here to there is 935 one way. Today you can't pay people to do work for you and if they do, it's expensive. The number one problem is water. To bulk water. The only guy will not answer the phone. The closest town stopped selling it. The next closest town is 145 miles away. Meaning. I have to go get my own. In southern Missouri. It just got below 20F. Like here. You have to travel for building supplies. A pickup and rain doesn't mix. Plus I have to move. Right now. Today. There isn't a road on my land. I have a small camper. No way to get it on the land or even turn it around. Land location. Meaning. Start the land sleeping in a pickup or a tent. The van made more sense. Of Saturday. Checking the mail. What makes sense now is. I should have kept the pickup. Paid it off. Sell everything. Keep my Jeep. Buy a condo near the ocean. Prices goes up. Pay drops. As of Saturday. I can say whoops. I messed up. The part on my pay. Mine and my son. On the SS part. We took a good hit in loss of pay. I shouldn't have even bought the land. I got it January 14th. 2020. Still making payments. This house I rent from my dad. My son. Handicap. All of his life. Lives with me all of his life. He is 24. Took the biggest hit. On SSI. He can only afford now two weeks of food for himself. That's it. I can't get a part time job. He is a full time job. Thanks to the Government. I messed up mega huge in buy the van now. The van is cheap. The interest is expensive. Now what. I don't know.
You should use your Veteran status to become a 503c NPO, that removes the Tax issues
tell me more please? Thanks!!
That’s not terrible and plus yep I work for a steel company
Great video . I'm not sure how any farmer makes money . I do not mine some taxes , it is just way out of control .
Stove pipe through the side wall. Less holes in the roof the better. Also safer typically. In upstate NY I've never had an issue.
Easier to brush clean the chimney too. Use a clean-out ‘T’ outside at the wall exit.
Stove pipe through side wall means 90 degree turn that obstructs the flow of exhaust. This results is incomplete burn. Go straight up through the roof.
It’d be interesting to see some expert input. The majority we’ve had is through the wall and 90deg to above the roof as well. With metal roofing is it still worse to go through roof than out the wall? Without info to prove otherwise, I’d go through wall and use a T instead of an elbow as well. But I’m not a pro by any means.
@JamesBlazen no. With a properly constructed set up that's tight the draft will work perfectly. 30 years of experience with chimneys for wood and coal
Straight up through the roof is the only way to go. The draft will be better, easier to clean and cheaper install.
thanks for being so honest. not that i'm nosy, just curious about the income. keep up the great content. I'm a long time subscriber!!!!
Watch the movie Temple Grandin (2010). This is how the concept of your cattle movement was created. Also what about your Ag exemption? Didn't see that factored in.
lol...what ag exemption? In nc you have to prove 10,000 worth of sales per year in order to qualify..this would be my first year to qualify...and that's only for sales tax...heck I've already bought everything I need. Here's my video with Temple Grandin ...I think you'll like it...I flew to Colorado to see her: ua-cam.com/video/wOvEo_YXLdE/v-deo.html
@@StoneyRidgeFarmer So awesome that you got to meet her and interview her. N.C Ag rules seem not for the small or medium farmers. Would a Conditional Farmer Exemption even help. The rules are way different here in TX. Good Luck.
had a conditional exemption...it expired. Next year I'll have a full exemption, but we're talking about pennies of savings since I have most of my equipment and do low input farming. It's almost not worth filing the paperwork
What am i missing on your math
$42,365 sales +
$18,800 expenses -
$23,565 =
$18,080 labor -
$11,485 = (total)
$20,285 why ? (Total)
$8,800 that's the fuel, s.a., lime cost
Yeah, something sure is off about the math.
With a good accountant, those taxes can be reduced. Invest in an HSA, up to a $8300 deduction, maybe a pre-tax IRA?
Agree. He needs a better accountant.
That’s why we need a flat tax. When it comes to your animals in some cases you could trade instead of sale. Like I traded my bull calf’s off for heifers and used them as replacement heifers. No taxes that way.
well...we gotta pay for the farm brother.....we make heifers here and dealing with people "trading" is a huge hassle. The cattle have to pay for the inputs on the land and fencing/tractors/fuel/seed/hay. Trading won't make that happen
This is true my wife is self employed same issue
Thanks so much for posting these instructive videos. I recently acquired over 50 acres of agriculturally zoned property that I'd like to raise cows, hogs, and chickens based on regenerative practices. I understand that any profits that I may earn some will be taxed, and I really don't have a problem with it as I'm grateful to live in a country that affords me a good standard of living. I've traveled a good bit internationally and I don't think most Americans know just how blessed they are. I just ask that tax dollars be used effectively and efficiently.
Amen....I don't mind paying my fair share, when it's not wasted and tossed around disrespectfully
Learning curves
Tax on 60k is 12%, less than 8k.
With a standard deduction of 29,200$ (married) and with the costs you mentioned for farm management costs..
I see no reason you would ever owe taxes
You must make quite a bit of money from you tube, side hustle, another business to owe taxes..
Just sayin’
Loved the video!! It was great!! We will be starting cattle soon.
my man...anyone that earns an income pays taxes...we pay them coming, going and sitting...meaning income tax, sales tax, fuel tax and property tax. It's pretty sad
I keep a ledger and a file of all my receipts. I also write off the mileage. Your equipment, improvements, fence are all write-offs. This sounds like click bait because your depreciation schedule should be fine. Your new shop?
We're talking 100% farm inputs v/s farm outputs. Fuel, Feed and soil amendments v/s cattle sales. This really isn't a 100% breakdown of every single penny spent on the farm. I keep records and most certainly have an accountant that I work with on every penny spent...but the long and short of it all is that for every $100 made......$10-30 goes to the gov't. Where there was once nothing....I made something...and that something is punishable by tax. Tax when I earn it, tax when I own it and tax when I spend it. That's the facts my friend. Can't write off a fence built in 2020 in the year 2024. Sadly enough
Taxation should be hard capped at 10%. It should never be more than the tithe commanded by Almighty God.
You must be one of the few who make 1,000,000 per year.
@ Ha! Funny. No, but my priorities may be different than yours.
There is no tithe commandment.
@ Lev 27:30-32; Deut 12:17, 14:23-25
@critical-thought Woe to those who twist the Word and preach for money.
Have you looked into the Bud Box setup? It worked way better for us, with cattle and sheep. Happy to send you information, if you like
oh I'm quite familiar....may incorporate that into my permanent infrastructure at some point
Build a barn. Government needs to stay out of it. No more taxes.
Josh, what about land taxes, machine costs, electric? I’m not sure your itemization is correct.
land taxes: Personal property tax not biz, machines are all paid for, electric bill in the shop is $35 per month....we just don't have many expenses right now....I'm guessing you saw the most recent vid how we put some money back into the land....spent about $20k total on the pastures/lime and such
Check out Temple Grinder. The last name may be misspelled. Her story is on you tube. I read her story before you tube. She was autistic and was a big name in agriculture.I belive she was from Texas. It educational.
you mean this Temple Grandin...here's my interview with her a few years back: ua-cam.com/video/wOvEo_YXLdE/v-deo.html
Hopefully with our new president in office your margins will improve high fuel prices come down and all it increases price of. Also spending comes down like with ourselves only what we can pay back in due time. God lead you in all you do and to your good future in farm direction and to a great love in your home. All the best blessings, David
success is punished in this country ....and it's sad.....laziness is rewarded and it's not right!
@StoneyRidgeFarmer Yet through it all Our God reigns , His ways are true & always right Josh, they work !
First off you gotta get a little WD-40 on them gates😂😂
I will be working with hair sheep in few years at retirement.
I'm curious about what happens to your cattle after you sell them, do they all get eaten or are they used for breading, could be a good video to meet the new owners?
cattle go to the sale barn, sometimes purchased by large cattle operations, feed lots or individuals. The whole reason behind taking them to the sale barn is to sell them anonymously v/s to individuals. Each buyer has a unique id number, but I honestly don't want to know who purchases them. Just like selling a puppy to someone....3 years later they'll call you back and try to sue ya because the dog bit someone...the sale barn takes away that liability....it's unfortunate to have to think defensively like this isn't it?
@@StoneyRidgeFarmer That makes sense for now but you should aim to receive a good price for your premium product.
So I'm a speedreader but not wearing my reading glasses. I read it as Cattle Masher and now none of us can unsee it...
cattleMASTER series 6 brother lol
@@StoneyRidgeFarmer Well it does mash the cattle. Haha!
Calfs aren't weaned before selling?
we let them wean naturally. They are all at weaning age so weaning them to the sale barn is what I do...it works great and no animals are out tearing up fences trying to get to their young
First, set up a health savings account tax-free. Put the max in every year. Put the farm in an LLC. Everything you spend, though the LLC, is deductible. Put all your vehicles in the LLC. Keep track of mileage and fuel and maintenance. You can run 7 years not making a profit and pay nothing.
Thank you for the information, Josh!! it is great information and helpful to us with our first generation ranch... Learned a lot from you!! much thanks - Jay
Another channel just posted that he's made $81K on 1/3 acre garden farming. Maybe diversify to a bit of something else depending upon the population around you.
yep....I'm sure he did...many a social media person making a million in his backyard growing microgreens
Taxation is theft by privilege of the taxed. It's madness.
Any hole in the roof is potential for water leakage. Go out the side wall.
No feed, mineral, depreciation of cattle/equipment, supplies, repairs/
maintenance and vaccines. Vehicle expense to haul cattle or get supplies? I suspect your expenses are higher than you showed on your video.
feed is hay, no meds for my animals....but you are probably right...I'm missing something for sure
This was a really interesting show, Josh. Farming and Ranching margins are tight, especially with increasing fuel costs. I work retail in California, and I see the price of beef we sell...And I wonder how the "little guys" are doing it out there.
Thanks for the education, Josh. I appreciate your show and I'm learning things. Keep up the great work!
yep....the "little guys" are loosing their butts! That's the biggest problem nowadays
Who pays for, the roads to market, the schools your kids attendetc, etc etc.
,
yep...don't have kids, also don't get a child tax credit....which if ya think about it...who's using up the infrastructure, schools, roads, parks and bridges? If this were fair folks with children should have to put more in the pot to pay for the services they use right? You and I both know that we pay tax when we earn, when we spend and property tax on what we bought. It's squandered away by the gov't and wasted. When a hammer cost $500 we've got a problem. Our gov't is very wasteful and it's time we stopped it. Spending tax payers hard earned money on wasteful enterprises and political gains in other countries...raise your hand if you think the gov't isn't wasteful
This was really helpful. I'm 4 years into growing a meat goat operation on a mostly wooded 170 acre homestead in KY. Profit margins go up with head numbers, but so do infrastructure and feed requirements. It's a fine line you just don't understand unless you live it. I want to expand some fencing into new areas, but that costs money. I refuse to take on debt to grow my farm. That's a good way to lose everything. I've also avoided USDA and EQIP money because I don't want the oversight into my farm. Patience and a lot of hard work, slow and steady wins the race.
It's a tough balancing act for sure...but slow and steady is the key!
Good video
Thanks
Look up Temple Grandin method
You mean this Temple Grandin? ua-cam.com/video/wOvEo_YXLdE/v-deo.html That's what we're doing here my friend....before the first piece of cattle handling equipment was ever installed....watch the vid you'll love it!
@ my apologies, I watched the rest… and yes I loved it and shared it with my friends
oh yeah...temple is awesome!
How in the world can they take it.
I was checking into my retirement. They are taking 20 % off top. $75 for every action set up. So went to 401k roth wanted to take out to pay off home equity loan they said they pull partial payment out of taxable even if roth could handle full amount so still have to pay taxes plus the $75.
I feel dishonnest so changed what was taking out of check to just what company matched.
you might consider that as income tax from salary. other options are paying salary for yourself and paying taxes from that or as you sayed using the money on farm.
It could, be worse - you could be in the UK. Anything under about 1,000 acres is just not viable here! We break even at best and now the government wants to take our hard-fought-for tax breaks away. Prices in the shops are so low that we get nothing for our efforts. We used to get EU subsidies and they were what we lived on - well they took that away with Brexit.
sad isn't it!
that dog is so great 🤠
I could see if you’re releasing them out of that red thing I forget what you call it and they come out that side door. They should be able to come right out that corner and go right back into the pasture. There shouldn’t be a block point but I could also see that you would wantto not allow cows to get in there from the pasture
We definitely need to trim the size of our government back to only essentials. Another problem when our government gets too big and bloated, they perpetually grow themselves costing us more in $ and personal liberty. Definitely feel our founding fathers would be reminding us, they fought and bled so we didn't have to live under bloated government that constantly removes individual liberties.
It's hard for most of us
amen!!!
oh Good Lord, don't get trapped in that thing! HELP!! *Smart phone on kitchen counter...
Make sure to Greeze, Grease, that swing gate, that noise would scare them? wooo!!
We had a cow get caught between the outer edge of the gate and the side of the squeeze chute. Took a couple of hours and finally a cutting torch to get her out.
@@franciscodanconia4324 That sounds like a mess. One time I put tire chains Ford Taurus (front wheel Drive), but tied in wrapped it around break cable. *bleep happens!
Government always has their hand out. I've always been told you can't figure labor costs into farming and make it a worthwhile profession. Fact is you just have to love it and it does seem like you do.. If you love what you do; you will never work a day in your life
Josh, everything just plain cost too much. Thank goodness you love what you do because there just isn't any real money in it. My uncle and aunt own a cattle farm and as they say it's a lifestyle. It is rewarding in ways other than monetarily. Sure does beat working in the ER or being chained to a desk! As far as taxes go.... you should be paying yourself. Talk to your accountant.
Go through the wall. You will have zero chance of a roof leak because of your stack. Voice of experience here.
Having some difficulty understanding your profit figures. Your gross profit (sales) is $42365, but your net taxable profit should surely be $42365 less costs and expenses, $30880, so net taxable profit is $11485?
keep watching...we get into more detail later
@@StoneyRidgeFarmer Thank you.
lets not forget what services and infrastructure are provided for that money. the very road and bridges that are needed to transport your project to market. the inspectors of your products. the scholls that help educate you kids or grandchildren. the military and police that help protect our country and your land. no one likes to pay taxes but without the roads and services the government provides you would have to pay build your own roads, etc. there are thousands of services that help keep all americans safe and someone has to pay for them and make it easier for farmers and all producers to get their final products to market. Taxes are the price we pay to life in this great country and you should not complain about taxes. every dollar you spend in taxes helps improve this country and any patriot should be proud to help contribute to improving this country.
no kids, served in the military, former law enforcement here...and I understand the monumental amount of waste our gov't creates. "Inspectors of my prouducts? we need more regulations huh? My friend...if our gov't was ran properly there's no way we'd be the most wealthy nation on earth and still harbor the most debt...how bout this...I don't mind chipping in and paying my share....but I do mind it being handed to beurocrats and lazy people that won't work...or to other countries for political reasons. Our nation's people work and watch the sweat of our brow being handed to those who won't work...or foreign countries. My fair share doesn't mean that I should be taxed on everything I earn, spend and own...it's out of hand brother...would you agree?
@@StoneyRidgeFarmer i know there is waste and abuse in our system. as far as foreign aid is concerned i believe it is necessary. as far as being in debt this because of a change in tax and economic philosophy over the last 40 years. supply side economics and the tax structure that comes with it has caused the income inequality and and national debt to rise. it has been a 40 year experiment that has failed and yet republicans still cling to and push it. trump plans on giving tax cut that benefits the rich and cutting corporate taxes to 15% which will reduce revenue further while making cuts to vet benefits and social security and medicare. its is weird that politicians have divided the middle and lower classes so much so that half of them are fighting to protect the ultra rich and big corporations while choosing to take away benefits that are necessary to the survival of everyone else. this experiment has turned this country into an oligarchy and trumps new administration will be filled. with them
sorry...done with this....we could have a conversation without bringing in politics....now that you've waived the political flag...I'm simply out. I'm not here to pick sides, I'm out. Turn off that agenda based fake news.....all of them...fox, cnn, msnbc....all of them...let's start living our lives without this horrible dividing influence in our faces every day.
@@StoneyRidgeFarmer politics is what determines taxes so if you have a problem with taxes then you have to talk about politics. be it local, state, or national. you are the one that chose to bring up taxes in your video not me. you could have opted not to bring it up considering that it had nothing to do with the content of your video. you stated that you hate taxes so do most people but is necessary. i hate working for a living but i found it necessary to do for over 40 years before i retired.