Our ranch (hay production is primary income) has sustained heavy hog damage for years. This past year we've been exterminating via firearms and I believe made a dent, though the property damage continues.

This form of ground control - has anyone experienced tax implications in BOTH income and sales tax exemptions ranging from ammo, firearm and night vision?

As far as sales tax, given the Biden admin proposal of 50% ammo and 3% firearms tax, such an exemption could be substantial.

If you truly have a hog problem you haven't made a dent in them. Our biologist says you have to kill 70% of every pig you see just to stay even. We have a problem too. It's significant. Any sort of dent is only short lived.

I'm also fairly confident that ag sales tax exemption specifically excludes guns and ammo.

We've thought about this for years as we spend a fortune on hog control. We've figured out several ways to elude the tax man but not in guns and ammo.

Kurt Gowdy said:

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If you truly have a hog problem you haven't made a dent in them. Our biologist says you have to kill 70% of every pig you see just to stay even.

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Challenge Accepted

If you were a full time agriculture operation and had the income to deduct expenses from, I would assume you could count guns, accessories, and Ammo as farm expenses on your income tax return. Assuming they were used for farm use only of course to exterminate nuisance animals. Other types of pest control are expenses so why not guns and ammo?

But if audited, might have some explaining to do.

Don't forget there is already a 10% Excise Tax paid by the Manufacturer and passed on in the price of the gun.

But if I pay an exterminator then it is deductible?

Does said exterminator receive a tax break in these Cost of Goods Sold? Lol. Not serious on this one.

Just throwing this out there.

How big is your place?

Is it fenced in the entire perimeter?

I've had good luck keeping hogs out with a HOT bottom wire about 6" high.

Kurt Gowdy said:

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Our biologist says you have to kill 70% of every pig you see just to stay even. We have a problem too. It's significant. Any sort of dent is only short lived.

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Not everything you hear is gold, whether it's from your biologist or urologist or barologist. Don't take one person's opinion for gold. I'll leave it at that.

OP, it largely depends on how you have your ranch set up. Is it an LLC? Is it run for the purpose of profit?

Sure. Plenty of farms and ranches hire a helicopter every year to fly their property and shoot hogs out of. Just another service that's paid for. And it's big fun.

Thanks for the continued good bull.

My honest guess is that the miles of installing and maintaining the amount of Hotwire that low to the ground (and most of the parameter is heavily wooded despite the interior being mostly hay meadow), would be more expensive and less effective (and less fun but we won't go there) than firearms, ammo and other hunting accessories.

I didn't know why an LLC would matter (our "ranch" has been in production long before the concept of LLC was invented). And "for the purpose of profit" as you know, is a huge debate but yeah, the ranch has supported my parents for decades (less now that we have switched from cattle to hay, but still turns a nice profit).

As far as "income", I can attest that the amount of land we took out of production simply due to hog wallows and danger for equipment, far outweighs the cost of the guns and ammo that I propose for hog control. So yes, the income/loss is substantial enough that I would be able to straight face explain and put numbers to to any auditor.

Sasappis said:

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Tax exempt and a deductible expense are two entirely different things.

I am not sure why a firearm could not be an appropriate business expense, but ask your tax accountant.

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Yes. That's why I distinguished the two in my OP. However, why ask the CPA when you can crowd source great answers here?! - lol

I sell guns and I wouldn't exempt tax on a sale. Although the burden of ag exemption has shifted more to the buyer rather than the retailer, the retailer still bears some responsibility of ensuring items sold are, in fact, for ag production.

The test is if the product can be used for things other than ag. I used to get yelled at when a customer wanted to exempt building materials for a barn. The guidance used to specifically state barns could not be exempt as they are a multi purpose building.

Look, doubt you will ever get audited on this one but a gun can be used for so many other things other than ag production.

That is actually a pretty accepted standard on the matter.

Have gun will travel

Well I guess you wouldn't like calling a gun safe a "fire proof filing cabinet" on a sales receipt either then.

Mas89 said:

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Well I guess you wouldn't like calling a gun safe a "fire proof filing cabinet" on a sales receipt either then.

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Explosive materials locker.

Mas89 said:

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Well I guess you wouldn't like calling a gun safe a "fire proof filing cabinet" on a sales receipt either then.

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Ditto

If the feds apply Biden's ammo tax, it wouldn't be a sales tax that would be exempt.

EMY92 said:

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If the feds apply Biden's ammo tax, it wouldn't be a sales tax that would be exempt.

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I had thought it would be similar to the gas/fuel tax which the bulk diesel is exempt in the farm use?

Quartz said:

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Don't forget there is already a 10% Excise Tax paid by the Manufacturer and passed on in the price of the gun.

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One of the very few things that I can say I believe the government got right.

mhnatt said:

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EMY92 said:

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If the feds apply Biden's ammo tax, it wouldn't be a sales tax that would be exempt.

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I had thought it would be similar to the gas/fuel tax which the bulk diesel is exempt in the farm use?

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It could be, but if they propose the tax, do you really think they'll offer ways around it?

I get irked every time I am in tractor supply and some dude doing the same things with the same stuff I am is tax exempt because he cuts hay on a few acres twice a year while I pony up for us both, and keep fields for wildlife. Ah exemptions are already chaotic and inconsistent in my view.
Fwiw, though, I think unless those products are specifically exempt, then you have a good case they are for ag use. I'm not going to fault someone for taking an exemption that they can, so much as the rules being somewhat ridiculous.

Kurt Gowdy said:

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If you truly have a hog problem you haven't made a dent in them. Our biologist says you have to kill 70% of every pig you see just to stay even. We have a problem too. It's significant. Any sort of dent is only short lived.

I'm also fairly confident that ag sales tax exemption specifically excludes guns and ammo.

We've thought about this for years as we spend a fortune on hog control. We've figured out several ways to elude the tax man but not in guns and ammo.

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How do you only kill 70% of a pig? Shoot its nuts off?