- Farm returnsSchedule F, farm entities and equipment depreciation.Learn more about small business accounting →
- Farm stands and shopsWhat New Jersey taxes, and what it doesn't.Learn more about sales tax →
- BookkeepingMonthly books for seasonal businesses.Learn more about bookkeeping →
- Family tax returnsFederal and New Jersey returns, prepared by a CPA.Learn more about tax preparation →
Farm country in western Morris County
Chester Borough, with its Main Street of shops and restaurants, sits inside the larger Chester Township, an area of preserved farmland in the New Jersey Highlands. Pick-your-own farms and farm markets such as Alstede Farms and Hacklebarney Farm Cider Mill draw visitors all season. That gives Chester a mix of farm, retail and family tax questions you don't find in most of the county.
Farms and farmland assessment
- Farmland assessment. New Jersey taxes qualifying farmland at its farm value rather than its market value. You generally need at least five acres in agricultural use (not counting the land under the farmhouse) and at least $1,000 a year of gross sales, plus $5 an acre above five acres. The application goes to your municipal tax assessor by August 1 of the year before the tax year.
- Schedule F and farm entities. We prepare farm returns and help decide whether the operation belongs in an LLC, partnership or S corporation.
- Equipment. Federal bonus depreciation lets you write off qualifying equipment in full, but New Jersey doesn't follow it and caps Section 179 at $25,000. We keep both depreciation schedules.
- Preserved farmland. Selling development rights to a preservation program is generally a taxable sale, while donating them can produce a charitable deduction. Planning ahead changes the result.
Farm stands and Main Street shops
- What's taxable. Fresh produce and most unprepared food are exempt from New Jersey sales tax. Prepared food, crafts and gifts are generally taxable at 6.625%.
- Seasonal staff. Payroll for summer and fall help, including NJ-927 quarterly filings and W-2s. See payroll services.
- Books that fit a season. Cash-flow planning for businesses that earn most of their revenue in a few months. See bookkeeping.
Families and retirement
For Chester households we prepare federal and New Jersey returns and plan around retirement income. New Jersey excludes a large share of pension and IRA income for many retirees. See how New Jersey taxes retirement income.
How we work
Most of our work happens through our secure client portal, by phone and by video call, so you don't need to leave the farm in the middle of the season. In-person meetings are available by appointment. We respond within one business day, and we're available Saturdays as well as weekdays.
Frequently asked questions
How do I qualify for farmland assessment in New Jersey?
Generally, at least five acres in agricultural or horticultural use (not counting the farmhouse land) and average gross sales of at least $1,000 a year, plus $5 an acre above five acres. File with your municipal tax assessor by August 1 of the year before the tax year.
Do I charge sales tax at my farm stand?
Not on fresh produce and most unprepared food, which are exempt in New Jersey. Prepared food and non-food items such as crafts and gifts are generally taxable at 6.625%.
Does New Jersey allow bonus depreciation on farm equipment?
No. New Jersey doesn't follow federal bonus depreciation and limits Section 179 expensing to $25,000, so equipment is often depreciated differently on the state return.
Do you serve both Chester Borough and Chester Township?
Yes. Our practice is in Mine Hill, in western Morris County. In-person meetings are available by appointment, and most clients share documents through our secure portal.