The tax code allows a taxpayer to deduct ordinary and necessary expenses paid or incurred in carrying on a trade or business. In one case, a married couple deducted more than $25,000 in expenses related to an organic farming venture, including startup costs and amortization. They bought acreage and planned to procure USDA certification for organic farming and divide the land into farming rental property. The U.S. Court disallowed deductions related to the farming venture determining that it wasn’t an active trade or business. Although the taxpayers had a business plan for a farming venture, they didn’t complete any of the steps in the plan during the tax year in question. (TC Memo 2021-138)