Taxation of Part-time Farming Operations and Stud Farms

Only if your farming activities are classified as a commercial business for tax purposes you can deduct any losses from other personal income and, for example, apply the rules of the business tax scheme.

SKAT has, for a number of years, paid particular attention to all types of part-time farming operations – ranging from large stud farms breeding thoroughbred horses to small arable farms.

The assessment of whether a part-time farm qualifies as a commercial business depends on a wide range of factors. Even if the farm has incurred losses over several years, it may still be considered a commercial activity for tax purposes.

TVC Law Firm can assess whether there is a basis for appealing a decision made by SKAT. We have many years of experience in handling appeals on behalf of part-time farmers.

In appeal proceedings, it is often relevant to arrange an expert appraisal of the farm’s operations and financial position. We have extensive experience in managing such appraisals and ensuring they are conducted professionally and effectively.