Income received from the operation of a farm or from rental income from a farm is taxable. Farmers determine their taxable income from farming and related activities by using Schedule F. Profit or loss from farm income is first reported on Schedule F and then “flows” to Form 1040, Schedule 1, line 6. This course covers basic farm income and expenses.
Objectives
At the end of this lesson, the student will:
- Understand basic farm income.
- Know when a taxpayer should file Schedule F.
- Realize that breeding and selling livestock could include domestic animals.
