Important Tax and Accounting Issues for Our Clients

Vineyard and Winery Accounting

vineyard as a business

Is my vineyard a hobby or a business?

Vineyard Hobby or Business? We regularly get this question from our clients. This is a very important question, and one that should be asked as early as possible because; it will affect the way you run your vineyard, how you keep records, the taxes you pay, and the amount of enjoyment you derive from your […]

Vineyard for Sale–What are the tax benefits?

Tax Planning Opportunities 1) Vineyard operations qualify as farming activities, and therefore qualify for the same incentives as other farming operations.  There are a lot of generous tax write-offs here, as long as you can proof that you have a profit motive. A formal and realistic business plan is your best defense against hobby loss attacks […]

Tax Deferrals Obtained by Combining Vineyard and Winery Operations

A Decade-Long Battle In this post, we revisit the 12-year battle fought with the IRS: If vineyard and winery operations are considered part of the same “group” for tax purposes, there ought to be significant tax deferral opportunities. The IRS didn’t want to allow these, because it was just “too good.” It took 12 years […]

Starting a Winery–What is the best legal structure?

Starting a Winery   Best Practices It is best industry practice to put all the operations involved in producing and selling wine into separate legal entities. The winery operations in particular are usually put in a separate entity, usually an LLC. This provides protection from potential liability issues. Wineries involve manufacturing processes and wine tastings; both […]

Tax Considerations for Starting a Vineyard

Tax Considerations Have a formal business plan. If you plan on producing quality grapes, it could take up to 3 to 5 years before you harvest your first commercial crop (proceeds exceed harvesting costs). This creates a problem, because the IRS generally expects any new business that is not a hobby to start making profits within […]