Introduction to Schedule F
Farming is a unique industry with its own set of special tax issues. Knowing these special rules is essential for tax professionals preparing farm tax returns. This course focuses on individual income tax issues to help tax professionals new to preparing farm tax returns. You will learn how to properly prepare Schedule F, Profit or Loss from Farming, and other major related forms, which depreciation and accounting methods are available to farmers, and how to identify hobby farms.
Upon completion of this course, you will be able to:
- Complete Schedule F, Profit or Loss From Farming.
- Identify the unique timing of certain farm income and expense.
- Identify the sources of income generated from farming operations.
- Differentiate between taxable and tax-exempt government program payments.
- Complete Schedule J, Income Averaging for Farmers and Fishermen.
- Identify the proper reporting of farm-related income on Form 4797, Sales of Business Property.
- Identify the allowable expenses and deductions for farmers.
- Compute the amount of farming loss allowed under the loss limitation rules.
- List the depreciation methods allowed for assets used in farming.
- Identify the requirements for claiming §179 depreciation.
- Differentiate between cash and accrual methods as related to farm income and expense reporting.
- Complete Schedule SE, Self-Employment Tax.
- List the nine relevant factors in the regulations under §183 that can be used to determine whether the farm has a profit motive.
- Summarize how to properly report the income and expenses from a farming activity that is determined to be a hobby.
This course includes an e-book. CPE is issued after exam is successfully completed.