It all began when I was a young boy…
A few weeks before Christmas, my mom, dad, and brother would pile into the family car to head out to a local Christmas tree farm in Michigan and cut down our Christmas tree.
I always loved our Christmas tree tradition: getting to explore the outdoors (and often in the snow), spending time together as a family, walking through the pine-scented fields, and decorating the Christmas tree when we arrived home.
I didn’t think too much about my interest in Christmas trees until I was in college. One day, I was between classes in the computer lab and discovered a website about how to grow Christmas trees.
Reading about Christmas tree farming suddenly brought back all the great memories of trudging through the fields as a child with my family to find the perfect tree. Right then, I could picture myself owning a Christmas tree farm and I made it my goal to one day own a Christmas tree farm.
Upon graduating from college, I began working for the IRS and earned my CPA license.
Christmas trees were still on my mind; however, little did I know I would own a Christmas tree farm sooner than I thought.
After my time at the IRS, I briefly worked as a financial analyst. I was working long hours and just didn’t feel it was my true calling. I built up the courage to save up as much money as I could and quit my job to take a break from the working world.
I flew to Southeast Asia, where I spent close to six months rediscovering my passions and considering what I wanted to do when I returned to the States.
One thought kept popping up in my mind: Christmas trees. I wanted to own a Christmas tree farm someday; why not now?
When I returned home, I started chatting with local growers to learn more about the intricacies of growing Christmas trees. It just so happened one of my best friend’s parents knew a family in Southern Ohio looking for someone to take over their small Christmas tree farm.
I jumped at the opportunity. Soon I was taking care of fields of Canaan Fir and Norway Spruce, planting my own seedlings by hand, shearing trees, and dealing with my first Bagworm infestation.
I quickly learned how much hard work is required to grow Christmas trees. There is always something that needs to be done on the farm, such as mowing, shearing, fixing equipment, or dealing with pests and weeds. I also transplanted trees for customers wanting windbreaks or privacy screens.
Although growing Christmas trees requires lots of labor, I discovered the many joys that come with the work: the satisfaction of looking back at a section of perfectly-sheared trees, starting work at sunrise and continuing past sunset, learning that driving a pickup truck down country roads is good for the soul, and also playing a key role in creating a memorable Christmas for families.
I also learned first-hand the many legal requirements associated with having a Christmas tree farm: forming an LLC, negotiating contracts, getting a nursery license and inspection, finding insurance, saving receipts, setting up a bookkeeping system, and, of course, doing taxes.
I was lucky to have a tax and accounting background, otherwise I would have been completely lost.
When I first discovered the generous tax treatment for Christmas tree growers, I thought to myself “all Christmas tree growers need to know about this!”
Soon after my discovery, I was at a Christmas tree association meeting and heard Christmas tree growers talking about the economics of their Christmas tree farms.
I heard comments such as “how do I know my taxes are right?” or “I just want to focus on farming, not bookkeeping”or “my accountant is not familiar with the tax breaks for Christmas tree growers.”
I also heard concerns about their future plans, such as “will I have to sell my farm to retire?” or “who would even want to buy my farm?” or “how do I pass my farm on to my children?”
After hearing all these concerns, I knew I could help Christmas tree growers with my tax, accounting, law, and Christmas tree background. Although Christmas trees are a uniquely profitable crop, many growers are not taking advantage of all the tax benefits available which would save them significant money.
Soon thereafter, I started authoring the tax column in Christmas Trees Magazine to share my tax knowledge with the industry. I also began speaking at Christmas tree association meetings to explain tax issues in-person.
However, my reasons for helping the Christmas tree industry are deeper than simply my enjoyment of Christmas trees, background in tax (I know, I might be the first person to ever say I love tax! But, I do!), and desire to help Christmas tree growers.
I believe in the importance of family, the meaning of Christmas, and the American dream.
By helping Christmas tree growers with their tax and accounting issues, I am not only helping hard-working Americans make more money, but also helping provide a traditional, family Christmas for many Americans.
I believe Christmas tree growers are very important to America. Christmas tree growers are some of the most hardworking, patriotic, and honorable people I’ve met. Every grower I’ve talked to has said that the joy on their customers’ faces is worth all the hours they spend in the field.
Each dollar I help a Christmas tree grower save directly impacts the lives of hard-working growers and helps support a family-centered Christmas I strongly believe in.
Through my experience being a Christmas tree grower, an IRS agent, a CPA, and an attorney, I have learned many strategies to maximize a grower’s earnings, as well as solve tax and accounting issues, including:
- Making a capital gain election under IRC § 631 for choose-and-cut and wholesale growers
- Taking advantage of accelerated depreciation
- Choosing the most advantageous legal entity (corporation, s-corporation, LLC, partnership, etc.)
- Setting up an organized bookkeeping system
- Tracking the necessary recordkeeping requirements for IRC § 631
- Including a Christmas tree farm in an estate plan or trust
- Cleaning up Christmas tree farm financials for a future sale
- Structuring leases for additional farmland
- Negotiating purchase and sales contracts for Christmas trees and equipment
- Analyzing the implications of a farm sale or transfer of ownership
- Preparing tax returns to minimize risk of an IRS audit
- Defending against an IRS audit
- Navigating the recent coronavirus stimulus
- And much more!
Whether you read my articles, hear me speak at an association meeting, watch videos on my website, or become a client of mine, I hope this post gives you a better idea of my personal background and why I’m passionate about advising the Christmas tree industry on tax, accounting, and legal issues.
I’ve been fortunate to have met some of you at Christmas tree association meetings, and I hope to meet many more of you in the future!
– Andrew
For more details about my background, visit my About Andrew page.
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