Schedule F, Profit or Loss from Farming

This form is used to report the income and expenses from farming business.

*We do not support Schedule F, Profit or Loss from Farming in our filing flow.

  • Part I - Farm income – cash method: If you use the cash method of accounting (reporting income in the year you receive it and deducting expenses in the year you pay them), you report your farming income here. This could include money from selling livestock, produce, grains, and other products, or payments from agricultural programs.
  • Part II - Farm expenses: Deducts the costs of running your farm, such as feed, fertilizer, labor, veterinary expenses, and depreciation on farm equipment. These are subtracted from your income.
  • Part III - Farm income – accrual method: If you use the accrual method of accounting (reporting income in the year you earn it and deducting expenses in the year you incur them, even if you don't pay them that year), you report your farming income. This section includes adjustments for changes in inventory of livestock and produce.
  • Part IV - Principal agricultural activity codes: The code that best describes your farming business. There's a list of these codes in the Schedule F instructions.

After you've filled out all the parts of Schedule F that apply to you, calculate your net profit or loss (your income minus your expenses) and report this on your Form 1040.