Farm Income Expense - Insurance

Article ID: 58987  

Question
Farm Income Expense - Insurance

Answer

 You can generally deduct the ordinary and necessary cost of insurance for your farm business as a business expense.

This includes premiums you pay for the following types of insurance.

• Fire, storm, crop, theft, liability, and other insurance on farm business assets.

• Health and accident insurance on your farm employees.

• Workers' compensation insurance set by state law that covers any claims for job-related bodily injuries or diseases suffered by employees on your farm, regardless of fault.

• Business interruption insurance.

• State unemployment insurance on your farm employees (deductible as taxes if they are considered taxes under state law).

http://www.irs.gov/pub/irs-pdf/i1040sf.pdf

Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040, 1040NR, 1041, 1065, or 1065-B.

Your farming activity may subject you to state and local taxes and other require-ments such as business licenses and fees. Check with your state and local governments for more information.

Additional information. Pub. 225 has more information and examples to help you complete your farm tax return. It also lists important dates that apply to farmers.


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Views: 989 Created on: Jun 15, 2013