What's the tax on a hobby orchard?

Question

Say I harvest crop as a hobby on my land, and it's less than an acre. What's the tax on the crop income? In California.

Answer 1

If it's truly hobby, then income goes on line 21 of your form 1040 (miscellaneous income), and expenses go to your Schedule A line 23 (miscellaneous deductions) subject to the 2% AGI threshold. You cannot deduct more expenses than you have income (i.e.: You can't deduct hobby losses).

If it is a profitable operation, you need to familiarize yourself with the Federal Schedule F, and read this information from the CA BOE.

I'd suggest talking to a CA-licensed CPA or EA practicing in California, and familiar with this field.