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Grazing a single cow on your property can be enough to trigger tax breaks in some places. If you qualify, an agricultural tax exemption could knock thousands off your property tax bill. Depending on your state's rules, one way to execute this tax strategy is to offer use of your land to a local farmer.

Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040, 1040-SR, 1040-NR, 1041, or 1065. Your farming activity may subject you to state and local taxes and other requirements such as business licenses and fees. Check with your state and local governments for more information.

Net farm income (NFI) reflects income after expenses from production in the current year and is calculated by subtracting farm expenses from gross farm income. NFI considers cash, non-cash income, and expenses and accounts for changes in commodity inventories.

Under Section 179, you can choose which purchases to cover and which you would like to save as future tax breaks. Some farmers and ranchers choose to split the Section 179 deduction for individual purchases in their year-over-year tax planning.

Hear this out loud PauseIf you are engaged in business activity, a business registration certificate can be obtained by filing an application, either through the Business for West Virginia Website or by filing a BUS-APP with the Tax Commissioner.

It costs $30 to obtain a business registration certificate. There may be other licensing and permit fees for other licenses you are required to obtain. For example, it may cost as much as $22,650 for a liquor license in the state. Professional licenses vary by profession.