And together, we’ve been working together for 20 years. Oh, yeah. And we’re going to tell you kind of good ride. It has its OK, go for another 20 years. Good. And we’ll talk about this. But what we want to talk about is hobby ranches. And would you like to buy one. What is a hobby ranch.
What’s a gentlemen’s ranch. Well they’re not all the same necessarily. Does the IRS have something to say about this. What are you doing with the land? Are you making a profit or are you just writing off expenses?
Is there something you just have some horses for your sweet child that you need a place for?
Is something running a miss? Are you running afoul with the IRS and writing off too many items here? Oh, for your hobby, rancher, gentleman, rancher. Any word you want to say here? Right. Is that a problem? They’re certainly fine. So let’s go ahead.
And first, we live in the suburbs of Dallas. Oh, no, I’m a re introductions. No, I’m a rancher. Ranches, so no thank. Just because I live in a master plan community, this doesn’t pertain to me. It could and have done absolutely very good.
So let’s take a look here and see what the IRS has to say. Let’s split the screen and chat in a link down below just past the like button. If you have your phone orientated in the correct way, then you’ll see it right down there. Just click the like there while you’re moving by. And then down here to the bottom, you will see this link, hobby farming and the IRS. So hobby farming, hobby ranching. Like, what are you doing? You’re writing off too much stuff. And so this is one page that happens to have a bunch of information as we scroll through it.
Essentially what they’re saying is like you can write stuff off, but like occasionally you have to make a profit. So to make profit at that income and realize income. So what are you going to do? Are you going to have cattle on there to do something? Are you going to sell something off there?
You know, there’s some items that you can do so like bring in some profit so that you have income so that you can make a profit and then you can improve the property and continue to do things and have write offs with it.
I know you are IRS tax professionals, nor are we certified CPA. So we do. One thing I do know is I don’t want to be on the other side of.
Of this, I would rather reach out to the IRS, not them reach out to me, so that’s why it’s important to follow these guidelines, right?
Yeah, very much so. So what we’re doing is we’re just showing these to you consult your CPA, right? Yes. But essentially, these do become a great way to write off profits. So if you have income from some other places and you’re like, huh, do I want to buy a little bit of land? Do I enjoy it? Do I want to get outdoors more or do I want to be handy? Do I want to be creative? Do I want to, like, stake my claim, so to speak? Do I want to homestead like these are all different things.
Do I want to use a chainsaw. Right. Like you enjoy that. I love it. So these things have been better for us. And this is one of the things that the virus has has provided us is a way to change what we’re doing. The Internet has also changed things so we can telecommute now and. Right. So there’s a lot of things that have changed. So let’s take a look and see some pictures of like what a hobby ranch or a hobby farm is.
So here we go. So here’s a bunch of different pictures and we can scroll around and click on any one in particular. And maybe your definition is different than mine. Maybe start with raw land and you filled it up exactly like you want. Maybe this is a place that you end up retiring to. I don’t know that you want to work while you retire, but these are all options for you. That’s an extreme example there. Right. But go ahead and take it. I’ve seen people building out these places for their families that they all kind of live together and have multiple people together because family is very, very important item.
Right. So you’re going to give up some things maybe like drive in location and maybe schools will be a little bit different. But if you’re telecommuting and your kids are going to school, virtually your your kids are at a different age, then maybe this is the right thing for you.
So we’re taking a look at a lot of these different hobby farms. And now we’re going to go over and look at a gentleman’s ranch. It’s essentially kind of like the same thing. It’s like a bachelor pad. I don’t know, like, well, we’re going to take a look. Right. So these might be a little bit more stately. Right. So there may be more established, like when I think a ranch or. That’s what I think right there. I think ranchers should have just like a massive house. I don’t know, maybe say something like. Yeah, like like forty thousand square inch.
To me it doesn’t this doesn’t scream ranch to you know, those are. No, no. All right. Well anyways, what we’re going to do is keep scrolling through here, find more pictures that speak to Shauna. But what it is, is that it should be a great place. It should be something that you enjoy. It should be something where your blood pressure goes down for your enjoyment goes up, where your time with others that are important to you also increases. Right. So don’t run afoul of the IRS. But no, look around.
And if this is something you want to contact, that’s a perfect example right here.
Fishing may be hunting or, you know, just get your slice of America. And if this is something that’s important to you, call a realtor that you know, like and trust. Hey, are you available? Could you refer me? I could refer you or anyone watching here. This could be something good that you’re able to pass off. Maybe you run really like that picture there. That’s really nice. It’s interesting. It is interesting.
And greenhouse maybe be more of a gentleman, a ladies room, ladies room in the ladies room. And speaking of I don’t know, there.
Well, let me grab your glasses and we’ll take a look. Do you want to look closer and see if we can find you a ladies ranch?
I think I found one you did? Mm hmm. I actually did. All right.
Well, on the screen, ladies and gentlemen, now we know Ladies Ranch’s do exist, will have to the madam ranch.
I don’t know yet. Yes. Well, now, let’s not worry about some of these names. Some of them start to sound bad for some different reasons, but we’ve covered this topic. But call a realtor that, you know, like and trust and let’s do this, you know, a few. We do close it.