Home Tax Form Schedule F Profit or Loss From Farming

Form Schedule F Profit or Loss From Farming



This form is used to report farm income and expenses.  You have to file this form along with Form 1040, 1040NR, 1041, 1065, or 1065-B.  You may be subject to other state and local taxes as well.  Review the following instructions from the IRS for more information on this form: https://www.irs.gov/pub/irs-pdf/i1040sf.pdf

“Profit or Loss from farming Schedule F Step 1”

If you’re and your spouse jointly own and operate a farm as an unincorporated business and share the profits and losses, you can be taxed as a partnership and file Form 1065, or you can qualify for a joint venture and file Schedule F.

“Profit or Loss from farming Schedule F Step 2”

In Part I, show the income received for items listed on lines 1 through 8b.  You’ll usually have to include cash actually and constructively received as well as the fair market value of good and other property received. 

If you ran the farm yourself and received rents for crop shares or farm production, report the rensts on line 2a or 2b.  See pages F-3 through F-5 for more instructions. 

“Profit or Loss from farming Schedule F Step 3”

In Part II, you cannot deduct any of the following:

· personal or living expenses that don’t produce farm income

· expenses for raising anything your family did not use

· inventory losses or personal losses

See page F-5 for information on capitalizing costs of property, deducting pre-productive period expenses, and prepaid farm supplies.  See pages F-5 through F-10 for specific instructions on lines 10 through 36. 

“Profit or Loss from farming Schedule F Step 4”

If you’re using the accrual method in Part III, you need to report all farm income when you earn it instead of when you receive it.  You need to include animal and crops in your inventory.  See Pub. 225 for exceptions, inventory methods, accounting methods, and required capitalized costs for inventory. 

If you were a debtor in a Chapter 11 bankruptcy during 2011, you need to regard the instructions on Form 1040 and Schedule SE (1040) as well. 

“Profit or Loss from farming Schedule F Step 5”

You cannot use Schedule F to report income from the following:

· soil preparation, veterinary, horticulture, or management on a contract basis

· breeding, raising, or caring for dogs, cats, or other animals

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