Tax tips to know when filing farm income
The IRS has published some facts concerning farm income and deductions that you may not know. I’ll briefly talk about them today.
- Crop insurance proceeds received as a result of crop damage must be included in income, generally in the year received.
- If you sell more livestock than you normally would because of weather-related conditions, you may be able to postpone reporting the sale until the following year.
- You may be able to average all or some of your current year’s farm income by allocating it to the three prior years.
- Ordinary and necessary costs of operating a farm for profit are deductible business expenses if the expense is common and accepted in the farming business. The expense must be appropriate for the business. To read the entire article, link here.