Why is it a Good Idea to Invest in Texas Property?

Are you thinking about investing in a Texas ranch or farm property?  Whether your goal is to own a piece of recreational property or operating a working ranch or farm, there are many tax implications to consider.  Invest in Texas ranch or farm land and you will discover many lucrative tax benefits, regardless of whether or not you run a working property or enjoy it as a vacation home.

Tax Benefits of Investing in a Working Farm

According to the Internal Revenue Service, anyone who manages, operates, or cultivates a farming business, can deduct many of the expenses incurred.  This includes anyone who cultivates dairy, fish, produce, or livestock, even if it is a part-time enterprise.  These deductions include:

• Depreciation - Outbuildings, barns, and equipment can qualify for a depreciation deduction.
• Wages and Other Ordinary Expenses - Any expenses that are necessary to run the business are deductible.  In addition to wages, these include a home office and other expenses.
• Operating Losses - If your expenses are higher than your income, you can claim a net operating loss.  You can even apply it to future or previous tax years.
• Loan Interest - Any loan you take out to run the business can be applied as an expense on your tax return.
• Utilities - The portion of the bills  you use to run your business are tax deductible.
• Equipment - If you use it to run your farm, you can deduct it as a business expense.  This also applies to any vehicles used, including ATVs.

Tax Benefits of Investing in Texas Ranch Land

If you are not interested in farming, you can still take advantage of the tax benefits of owning Texas ranch land.  Tax deductions, exemptions, and credits are available for conservation and wildlife efforts.  Some of these benefits include: 

• Wildlife Tax Exemptions - The Texas Comptroller and Wildlife and Parks Departments are required by law to allow you to have your wildlife management property appraised as agricultural land.  While there is specific criteria that needs to be met, it can greatly reduce your property tax liability.
• Homestead Residence Exemptions - You can qualify for the Texas Residence Homestead Exemption if your ranch home is your primary residence.  This is a school tax exemption of up to $25,000.  This is just one of several homestead exemptions available.
• Disabled or Senior Citizen Exemption - Invest in Texas ranch land for your primary residence and you can qualify for a disabled or senior citizen tax exemption.  You must be disabled or 65 or older to qualify.  This is a school tax exemption of up to $10,000 in addition to the Homestead Residence Exemption.

If you have been considering purchasing some farm or ranch property, Texas is a prime location.  Texas tax laws are  friendly to taxpayers and help save many agricultural land owners thousands of dollars each year in both income and property taxes.  To learn the full extent of the benefits you may qualify for, seek the advice of a tax professional.

Sunset Ranches is a land development company that offers tracts of land in West Texas in Hudspeth County.  All tracts are surveyed and recorded,  with permanent, public roadways that offer direct access to every tract of land available.  Beautiful mountain views make it ideal for farming, ranching, hunting, camping, hiking, and permanent residences.  Sites are owner financed with $0 down and are backed by a money-back guarantee.