Tex, Currently in TN there aren’t any provisions that would give you any tax breaks for leasing part of your farm to a rescue, I presume 501C3, organization. Where you can achieve some tax savings is to rent it at full value and make a month donation back to the organization. Renting at less than market value has landed some taxpayers in trouble with the IRS. It has to be an “arms length” transaction that will pass the smell test. Otherwise, the IRS will impute the difference between what was paid to you and a “true economic rent” and add it to your income, along with penalties and interest of course. I’d run anything you’re contemplating past your tax pro. You don’t want surprises.
Dave McAdoo
Tobruk Trailers
since 1984 (I’m also a tax accountant.)
