Introduction to Schedule F 

Fees: $97 for Members and $113 for Nonmembers

Summary
Schedule F (Form 1040), Profit or Loss from Farming, is used primarily to report farm business income and expenses for both the cash or accrual method of accounting. This course is designed to give tax professionals a basic understanding of farm income and expense reporting, as well as being able to identify a hobby farm.

Table of Contents

Objectives
Upon completion of this course, the tax professional will be able to: 

• Identify the sources of income generated from farming operations. 
• Differentiate between taxable and tax-exempt government program payments.
• Understand proper reporting of crop insurance and disaster proceeds.
• Identify farm rental income reported on Schedule F vs. Schedule E. 
• Identify the allowable expenses and deductions for farmers and where to report them on Schedule F.
• Recognize nondeductible expenses and losses.
• Determine allowable depreciation methods (including the §179 election) for assets used in farming.
• Recognize when farming vehicles meet an exception to the substantiation requirements for business use
• Differentiate between cash and accrual methods as related to farm income and expense reporting.
• Identify the unique timing of certain farm income (e.g., crop insurance proceeds or federal crop disaster payments) and expenses (e.g., prepaid farm expenses).
• Understand farm inventory reporting.
• Compute the tax using Schedule J.
• Recognize the nine relevant factors in the regulations under §183 that can be used to determine whether the farmer has a profit motive.
• Understand the impact of a farm as a hobby and how to report the income and expenses from an activity not engaged in for profit.             

For more information regarding refund, complaint and/or program cancellation policies, please contact our Member Services Department at 800.558.3402, ext. 3.

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