Writing a Farm Off On Taxes

To write off your farm on your taxes, you can generally deduct "ordinary and necessary expenses paid in carrying on any trade or business" as stated in IRC § 162.

This includes a wide range of expenses such as car and truck expenses, fertilizer, seed, rent, insurance, fuel, and other costs of operating a farm.

Additionally, you may be able to deduct the cost of conservation practices, real estate and personal property taxes on farm business assets, FICA taxes paid to match the amount withheld for employees, federal unemployment taxes on farm employees, federal use taxes paid on highway motor vehicles used for farming, and more. 

To qualify for these deductions, you need to be engaged in the business of farming, which generally means cultivating, operating, or managing a farm for gain or profit, either as an owner or tenant.

You should seek the advice of a tax professional regarding the application of these general principles to your individual circumstances.  For reporting farm income and expenses, you should use Schedule F (Form 1040).

It's important to keep detailed records of your farm expenses to support your deductions.

If you need any further help or have any questions about service, tractors, implements, or anything else equipment-related, please contact your dealer, local mechanic, or call us at 602-734-9944.  Please ask about our current new and used tractor supply.

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