Published: December 4, 2023
Last Updated: December 4, 2023
A federal judge lamented having to deny hundreds of thousands of dollars in tax deductions to a doctor who also ran an organic beef farm.
Tax lawyer David Rotfleisch said in an interview that the rule was designed a long time ago to exclude “gentleman farmers,” a.k.a. hobbyist farmers, to claim massive business losses on small operations to offset their revenues from other, more lucrative endeavours.
“If you’re a hobbyist farmer, Parliament says you shouldn’t be able to deduct it. I don’t think that’s the correct policy decision,” he said. “It’s completely unreasonable.”
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