Farm Income Expense

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Farm Income Expense - Taxes
Article ID: 33864

Question

Farm Income Expense - Taxes

Answer

You can deduct the following taxes:

Real estate and personal property taxes on farm business assets.
Social security and Medicare taxes you paid to match what you are required to withhold from farm employees' wages.
Federal unemployment tax.
Federal highway use tax.
Contributions to state unemployment insurance fund or disability benefit fund if they are considered taxes under state law.

Do not deduct the following taxes:

Federal income taxes, including your self-employment tax. However, you may deduct one-half of your self-employment tax on Form 1040.
Estate and gift taxes.
Taxes assessed for improvements, such as paving and sewers.
Taxes on your home or personal use property.
State and local sales taxes on property purchased for use in your farming business. Instead, treat these taxes as part of the cost of the property.
Other taxes not related to your farming business.

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Article Details

Views: 811	Created on: Jun 15, 2013 Date updated: Sep 21, 2015
Posted in: GENERAL QUESTIONS, Schedule F - Farming Income

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