Destroked 450
Well-known Member
- Location
- Harned, Ky
Nice discussion.
I hope you don’t feel we are arguing.
The problem I’m having with this is……
Let’s say you are a farmer
I am not a farmer.
We both open a commercial business that needs a piece of heavy equipment.
You as a farmer have farm tags
This affords you special tax advantages
A cheaper farm tag
No ELD
No CDL
Cheaper insurance
And so on
That seems to me an unfair business advantage afforded to you over me by allowing you to haul your equipment on a truck with farm tags.
No argument here
As a 30 year retired truck driver, owner operator and farmer I try to only speak from personal experiences or trusted hear say
We both open a commercial business that needs a piece of heavy equipment, aka John’s Excavating
My name is also John
That statement in itself implies it is to be a commercial business, my understanding of the definition of a commercial business is- it provides a service that generates revenue and must be self supportive, last I checked IRS requires a business to show a profit once every 3 years or else they can classify it as a hobby, that opens a how different can of worms
Since we both open a commercial business all laws, regulations and commercial licensing requirements must apply
In my case as a farmer should I start a side line business to supplement my farm income, yes I can skirt the regulations using my farm exemption, however if that side business continues to grow and generates enough revenue to become self supportive I am required to declare it as a commercial business and meet the requirements for the now commercial vehicles being used to haul said pieces of equipment
3 brothers I know each farm several hundred acres, one brother purchased a dozer and excavator to clean some ground, that lead into some side jobs and eventually into a business of itself. Today his trucks have commercial license and CDL drivers, his two brothers still run farm tags
Many of the local farmers have formed a LLC company for their over 26,000 lb truck in order for them to generate revenue when not needed for their own farming operation
In some cases a farmer will continue to skirt the rules but eventually it will likely get red flagged by IRS, state tax auditors or an inquisitive DOT officer, at that point the snow ball has been thrown off the mountain and that farmer had better get ahead of it before it catches him at the bottom of the hill
The old ignorance of the law deer in the head lights claim isn’t going to stop that snow ball from splattering them when it hits
Hope I didn’t ramble to much