11f – Schedule F – Profit or Loss From Farming (Attach to Form 1040)

📘 Schedule F – Profit or Loss From Farming (Attach to Form 1040) :-

🔹 Purpose :
Schedule F is used by farmers to report farm income and expenses. It helps determine the net profit or loss from operating a farming business.

🔹 What to Report on Schedule F :

1.   Farm Income
– Sales of livestock, produce, grains, and other products.
– Cooperative distributions.
– Agricultural program payments.
– Crop insurance proceeds.
– Custom hire (machine work) income.

2.   Farm Expenses (deductible)
– Seeds and plants.
– Fertilizers and lime.
– Labor hired (wages).
– Feed and veterinary costs.
– Equipment repairs and fuel.
– Insurance, mortgage interest, utilities, and depreciation.

3.   Net Profit or Loss
– Net income is subject to income tax and possibly self-employment tax.

🔹 Who Must File :
*Individuals or sole proprietors who operate a farm for profit.
*Includes crop farms, livestock farms, dairy, poultry, fish farms, orchards, and plantations.

🔹 Special Notes :
Form 4835 is used instead if you’re a landlord receiving crop/livestock shares but not materially participating in farm operations.

Farmers may be eligible for special tax rules (e.g., estimated tax payments due dates, farm income averaging).

👉 In short: Schedule F = the farmer’s business income statement for taxes.