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What are my mother-in-law's rights regarding her lease agreement?

What are my mother-in-law's rights regarding her lease agreement?

Q: What is the IRS definition of a farm?

The IRS defines a farm as any land used for the production of agricultural products. This includes land where crops are grown or livestock is raised for sale. The IRS also considers the intent to make a profit and the scale of operations when determining if an activity qualifies as farming.

Q: How many acres do you need to be considered a farm for taxes?

There is no specific minimum number of acres required to be considered a farm for tax purposes. The IRS focuses on the nature of the activities conducted and the intent to make a profit rather than the size of the operation. Even small operations can qualify if they meet the criteria for farming.

Q: What is the IRS Pub 225?

IRS Publication 225, titled 'Farmer's Tax Guide,' provides information on the tax rules and regulations that apply to farmers. It covers topics such as income, deductions, credits, and recordkeeping for farming operations. This guide is a valuable resource for farmers to understand their tax obligations and opportunities.

Full question:

my mother in law sold her property to her daughter for approximately $94,000.00 less than the low appraised amount with the provison all parties enter into a lease agreement with her for 11 years to live rent free and only pay one half of the utilities. my mother in law is 80 years old, and now only 1 year and 5 months later her daughter and her husband have decided to sell the property. there is a stipulation that my mother in law is to live on the premises for 11 years rent free to make up the reduced amount on the sale of the property. she does not want to move, however she will consider this as they are making her life miserable, if they pay her the balance of the 11 years stipulated in the agreement of to live rent free 700.00 per month for 11 years which totaled over 94000.00. the lease was never recorded because it did not have a notary signature, however the joint attorney on the closing did spell out all the considerations he performed for the fee of 1000.00 which was contract closing preparation of lease with specific information regarding the 11 years rent free at the premises....what is her recourse..can she record the lease and the attorney document on his letterhead that spells out why he was paid 1000.00. I think she can but of course neither document is notarized except that it is on the letterhead of the attorney in fact for both parties..?? She will move so they can sell to keep her sanity but she needs the money 80000.00 to find another dwelling

Category: Real Property
Subcategory: Sales
Date: 04/07/2025
State: New York

Answer:

The lease may not be recordable without a notarized signature. However, since your mother-in-law is currently living on the property, any potential buyer would be aware of her occupancy and claim. If the recorder accepts the lease for filing, it could provide constructive notice to a buyer of her claim. Other factors may affect the rights of the parties involved, and the lease terms could contain elements that support her position. It seems that your mother-in-law has a strong case, but it’s advisable to consult with local counsel for assistance.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What qualifies as a farm to the IRS?

The IRS defines a farm as a place where agricultural products are produced. This includes land used for cultivating crops, raising livestock, and other farming activities. To qualify, the operation must be for profit and involve the production of goods such as fruits, vegetables, grains, or livestock. The IRS looks at the nature of the activities and the intent to make a profit when determining if an operation qualifies as a farm.

Is farming a trade or business?

Yes, farming is considered a trade or business by the IRS. It involves the production of goods for sale and can include activities such as planting, cultivating, and harvesting crops or raising animals. Farmers can deduct ordinary and necessary expenses related to their farming activities on their tax returns, treating it as a business operation.

What is the IRS definition of a farm?

Can section 179 create a loss on schedule F?

Yes, Section 179 can create a loss on Schedule F if the deductions for qualifying property exceed the income from farming activities. This provision allows farmers to deduct the cost of certain property as an expense in the year it is placed in service. If these deductions exceed income, it can result in a net loss for the year.