For the hobby farmer, deductible farming losses for a year are restricted to $2,500, plus one-half of the next $30,000.

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The specific deduction limits for hobby farming losses can vary based on tax laws and regulations, which may change over time. The IRS does not specify a fixed amount like $2,500 plus one-half of the next $30,000 for hobby farming losses. Deductions for hobby activities are generally limited to the income produced by the activity, and the rules for what constitutes a hobby versus a business can affect deductibility.

For the Hobby Farmer, Deductible Farming Losses for a Year