Schedule F: Farm Profit & Loss

I am always amazed at how many hobby farmers have no idea what a Schedule F is. It is a form that you attach to your 1040 to report Loss or Profit From Farming. I first learned about it when I was looking to buy some more land to farm and the bank asked if I had filed my Schedule F for the last "x" years. It also applies to ranching and is just another way to decrease your tax burden.

Who should file a Schedule F?
If you are the sole proprietor of your farming business then you should file the Schedule F. A farming business includes livestock, dairy, poultry, fish, fruit, ranches, ranges, nurseries, orchards, and basically anything agriculture related.

What can you expense on the Schedule F?
Deductions you may be able to claim include but are not limited to the expenses you pay for chemicals, feed, fertilizers, business vehicles, gasoline and other fuel, repairs and maintenance, seeds and plants, storage and warehousing, supplies, insurance, interest, taxes, utilities, veterinary fees, and rent or lease fees for vehicles, machinery, equipment, or land.

Record keeping is very important for filing your Schedule F; as is record keeping for any tax liability. Be sure to consult your tax professional and see if a Schedule F may apply to you.

IRS INFORMATION ON SCHEDULE F