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April 5, 2024
Question

Can timber royalties offset farm expenses and loss?

  • April 5, 2024
  • 1 reply
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We had farm expenses (purchsed farm equipment) but no farm income this year.  We sold some timber from inherited land so we have income from a long term capital gain.  

1 reply

April 5, 2024

Yes, your farm loss and long term capital gains will each be included in calculating your total taxable income, so ultimately they do offset each other.

 

Here's more info on How Capital Gains are Taxed