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Category: Farm Income (Schedule F)
47 Articles
Orange arrow Classification of Property - Form 4562

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  Use the following rules to determine the classification of the property under ADS. Under ADS, the depreciation deduction for most property is based on the property's class life. See section 168(g)(3) for special rules for determining the class life for certain property. See Pub. 946 for informatio...
Orange arrow Section 179 Deduction and Special Allowance - Form 4562

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  Section 179 Property https://www.irs.gov/pub/irs-pdf/i4562.pdf?_ga=1.247664839.1715192775.1473785521 Section 179 property is property that you acquire by purchase for use in the active conduct of your trade or business, and is one of the following. Qualified section 179 real property. For more...
Orange arrow Farm Income - Conservation Expenses

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  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 requirements such as business licenses and fees. Check with yo...
Orange arrow Do I have to file Form 8582?

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  Exception for Certain Rental Real Estate Activities If you meet all of the following conditions, your rental real estate losses are NOT limited by the passive activity loss rules. If you do not meet all of these conditions, see the Instructions for Form 8582 to find out if you must complete and a...
Orange arrow Amortization - Description of Costs

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  Only enter costs for which the amortization period begins during your tax year beginning in the current tax year. Describe the costs you are amortizing. You may amortize the following: Geological and geophysical expenditures (section 167(h)) Pollution control facilities (section 169) ...
Orange arrow Form 4562 - Schedule F Depreciation and Amortization

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  Use Form 4562 to: Claim your deduction for depreciation and amortization, Make the election under section 179 to expense certain property, and Provide information on the business/investment use of automobiles and other listed property. Who Must File Form 4562 Except as otherwi...
Orange arrow Farm Income - Car and Truck Expense

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  You can deduct the actual expenses of operating your car or truck or take the standard mileage rate. You must use actual ex-penses if you used five or more vehicles simultaneously in your farming business (such as in fleet operations). You cannot use actual expenses for a leased vehicle if you prev...
Orange arrow Can I Deduct My Farm Income Expense for Utilities?

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  Enter amounts you paid for gas, electricity, water, and other utilities for business use on the farm. Do not include personal utilities. You cannot deduct the base rate (including taxes) of the first telephone line into your residence, even if you use it for your farming business. But you can deduc...
Orange arrow Farm Income Expense - Insurance

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  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 ...
Orange arrow Schedule F - Material Participation

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  Material participation - Participation, for purposes of the seven tests listed below, generally includes any work you did in connection with an activity if you owned an interest in the activity at which you did the work. The capacity in which you did the work does not matter. However, work is not...
Orange arrow Farm Income Expense - Freight and Trucking

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  http://www.irs.gov/pub/irs-pdf/i1040sf.pdf You can deduct the actual expenses of operating your car or truck or take the standard mileage rate. You must use actual expenses if you used five or more vehicles simultaneously in your farming business (such as in fleet operations). You can't use actual...
Orange arrow What are capital expenses?

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  Capital expense is payment, or debt incurred, for the acquisition, production, or improvement of a unit of property. You include the expense in the basis of the asset. Uniform capitalization rules also require you to capitalize or include in inventory certain other expenses. Capital expenses are g...
Orange arrow Depreciation and Other Information

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  You can deduct depreciation of buildings, improvements, cars and trucks, machinery, and other farm equipment of a permanent nature. Don't deduct depreciation on your home, furniture or other personal items, land, livestock you bought or raised for resale, or other property in your inventory. Yo...
Orange arrow Farm Income Expense - Custom Hire (machine work)

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  Enter amounts paid for custom hire or machine work (the machine operator furnished the equipment). Do not include amounts paid for rental or lease of equipment that you operated yourself. Instead, report those under Rent or Lease of Vehicles, Machinery and Equipment. http://www.irs.gov/pub/irs-pd...
Orange arrow Income Averaging for Farmers and Fisherman

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  Use Schedule J (Form 1040) to elect to figure your income tax by averaging, over the previous 3 years (base years), all or part of your taxable income from your trade or business of farming or fishing. This election may give you a lower tax if your income from farming or fishing is high and your ta...

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