Question
Business expenses
I am in the process of being audited by Louisiana State and they have determined that my business (farming) is a hobby, not an attempt to make a profit and is therefore ineligible for taking a business deduction. I have a fairly large investment in equipment that I made 2 years ago. Audit defense believes there is little chance of overturning this.
Since the audit determination was made by the state is there a way to take the depreciation on my Federal Taxes but not the state? Or is this just asking for a Federal audit and finding as well?
