Agricultural Lodging

Forum|Forum|1 year ago
April 25, 2025
2 replies
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Hi,

I have a client in Colorado that farms land in Texas. During the farming season, he hires contractors to do the work. Last year, his company rented apartments near the land to house the contractors and purchased 2 small homes for the same reason. I don't believe he can deduct the rent but I came across something in Pub 225 that talks about being able to deduct the costs of maintaining houses and their furnishings for tenants or hired help as farm business expenses.

Thoughts?

ProSeries Professional

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Best answer by sjrcpa

@sjrcpa If they were exempt, IRS wouldn't have Form 943.

Where I'm from, "contractors" means "of course they don't have SSNs, you think we could get Americans to do this job?"

@BobKamman I forgot about Form 943, or blocked it from memory. My first job in public accounting was for a small firm that had a lot of farm clients. Oh so many years ago.

I wasn't going to go into the legal status of the workers, but I thought about it. I'm sure all of the visas and permits are in good order. 😉