If you earn a living as a self-employed farmer, you’re already including a Schedule F attachment with your annual tax return. However it’s important to note the IRS defines “farmer” broadly, and folks who raise produce for farmers markets, honey and timber sales or the like may also fall into this tax category.
Here’s a look at the 2016 Instructions for Schedule F. This is a good resource to guide you through reporting farm income and expenses. Your farming activity may subject you to state and local taxes and other requirements such as business licenses and fees. The IRS recommends checking with state and local governments for details.
As you go through the instructions, you can quickly identify points that might be applicable to your situation – like mileage – and other forms that may pertain to your situation, like Form 3800 to claim any general business credits. You can also learn the specifics on the options available to report your income or expenses.
Like most things tax-related, this reporting is detailed and varies on a case-by-case basis. If you’re thinking you should be considering Schedule F for your 2017 tax prep, you can give us a call anytime at (913) 888-9100. We’re always available to learn about your circumstances and provide you with tax recommendations based on our years of experience.
