Proper Written Contracts Important For Ranch Managers

摘要

We all know that recordkeeping is important for tax purposes, as well as for keeping track of day-to-day activities on the ranch, but most ranchers do not keep the right kind of records. In Garbini v. Commissioner [T.C. Summary Opinion 2004-7], the Tax Court said the taxpayers did not keep the type of records which could be used to increase the profitability of the ranch. They never prepared a business plan, or budgets or market projections which would outline strategies for ensuring profits.