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Farm Income Expense - Insurance
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Deduct premiums paid for farm and business insurance. Deduct amounts paid for employee accident and health insurance under Farm Expenses - Employee Benefit Programs. Amounts credited to a reserve for self-insurance or premiums paid for a policy that pays for your lost earnings due to sickness or di...
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Schedule F - Material Participation |
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Material participation. For the definition of material partici-pation for purposes of the passive activity rules, see the instruc-tions for Schedule C (Form 1040), line G. If you meet any of the material participation tests described in those instructions, check the "Yes" box. If you are a retire...
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Farm Income - 1099PATR and Agricultural Program Payments
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1099-PATR If you received distributions from a cooperative, you should receive Form 1099-PATR. Show your total distributions from cooperatives in the first box (line 5a on a paper form). This includes patronage dividends, non-patronage distributions, per-unit retain allocations, and redemption of ...
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Farm Income CCC |
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Commodity Credit Corporation (CCC) Loans Generally, you do not report CCC loan proceeds as income. However, if you pledge part or all of your production to secure a CCC loan, you may elect to report the loan proceeds as income in the year you receive them, instead of the year you sell the crop. If...
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Farm Income - Crop Insurance Proceeds
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Crop Insurance and Crop Disaster Payments You must include in income any crop insurance proceeds you receive as the result of physical crop damage or reduction of crop revenue, or both. You generally include them in the year you receive them. Treat as crop insurance proceeds the crop disaster...
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Farm Income - Other Income |
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Other Farm Income such as the following: • Illegal Federal irrigation subsidies. See Pub. 225 • Bartering income. • Income from cancellation of debt. Generally, if a debt is cancelled or forgiven, you must include the cancelled amount in income. If a Federal agency, financial i...
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Farm Expense Property Details
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Do not deduct the following. Personal or living expenses (such as taxes, insurance, or repairs on your home) that do not produce farm income. Expenses of raising anything you or your family used. The value of animals you raised that died. Inventory losses. Personal losses. If you we...
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Farm Income Expense - Feed Purchased |
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If you use the cash method, you cannot deduct when paid the cost of feed your livestock will consume in a later year unless all of the following apply. The payment was for the purchase of feed rather than a deposit. The prepayment had a business purpose and was not made merely to avoid tax. De...
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Farm Income Expense - Freight and Trucking
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Do not include the cost of transportation incurred in purchasing livestock held for resale as freight paid. Instead, add these costs to the cost of the livestock....
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Farm Income Expense - 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...
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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 expenses 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 previ...
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Farm Income Expenses |
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Do not deduct the following. Personal or living expenses (such as taxes, insurance, or repairs on your home) that do not produce farm income. Expenses of raising anything you or your family used. The value of animals you raised that died. Inventory losses. Personal losses. If you we...
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Farm Income Expense Preproductive Period
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Election to deduct certain preproductive period expenses. If the preproductive period of any plant you produce is more than 2 years, you can elect to currently deduct the expenses rather than capitalize them. But you cannot make this election for the costs of planting or growing citrus or almond gr...
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Farm Income - Conservation Expenses |
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Deductible conservation expenses generally are those that are paid to conserve soil and water for land used in farming, to pre-vent erosion of land used for farming, or for endangered spe-cies recovery. These expenses include (but are not limited to) costs for the following. The treatment ...
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Farm Income Expense - Custom Hire (machine work)
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Enter amounts paid for custom hire or machine work (the ma-chine operator furnished the equipment). Do not include amounts paid for rental or lease of equip-ment you operated yourself. Instead, report those amounts on line 24a....
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