Schedule F Form PDF Details

In the realm of agriculture business, understanding and correctly filing tax documents is crucial for operational success and compliance with federal regulations. Among these essential tax documents is Schedule F, a form dedicated to reporting profit or loss from farming activities for a particular tax year, 2021 being the case in point. Tailored for individuals who own or operate a farm as a sole proprietor, this form is an attachment to Form 1040 and its variants, playing a pivotal role in the agricultural taxation landscape. It captures a comprehensive range of farming income sources, including, but not limited to, sales of livestock and produce, agricultural program payments, and crop insurance proceeds. Additionally, it meticulously itemizes farm-related expenses – from feed and fertilizers to insurance and labor costs – underlining the importance of detailed record-keeping in the agricultural sector. The option between cash and accrual accounting methods further provides flexibility, accommodating the diverse financial practices within the farming community. The stipulation for involvement in the business operation, coupled with requirements related to the filing of Form(s) 1099 for certain payments, underscores a nuanced approach to assessing the active engagement of the taxpayer in farming. Through its structured presentation of income and expenses, Schedule F not only facilitates the accurate assessment of taxable farm income but also reflects a nuanced understanding of the operational realities faced by farmers, striking a balance between fiscal responsibility and sectoral accommodation.

QuestionAnswer
Form NameSchedule F Form
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other names Form 1040 Schedule F

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SCHEDULE F

 

 

Profit or Loss From Farming

 

 

 

 

OMB No. 1545-0074

(Form 1040)

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Department of the Treasury

 

Attach to Form 1040, Form 1040-SR, Form 1040-NR, Form 1041, or Form 1065.

 

 

Go to www.irs.gov/ScheduleF for instructions and the latest information.

 

 

Attachment

Internal Revenue Service (99)

 

 

 

Sequence No. 14

Name of proprietor

 

 

 

 

 

 

 

 

 

 

 

Social security number (SSN)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A Principal crop or activity

 

B Enter code from Part IV

C Accounting method:

 

D Employer ID number (EIN) (see instr.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

Accrual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EDid you “materially participate” in the operation of this business during 2021? If “No,” see instructions for limit on passive losses

F Did you make any payments in 2021 that would require you to file Form(s) 1099? See instructions . . . . . . . .

G If “Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . . .

Yes

Yes Yes

No

No

No

Part I Farm Income—Cash Method. Complete Parts I and II. (Accrual method. Complete Parts II and III, and Part I, line 9.)

1a

Sales of purchased livestock and other resale items (see instructions) . .

. . .

 

1a

 

b

Cost or other basis of purchased livestock or other items reported on line 1a

. . .

 

1b

 

c

Subtract line 1b from line 1a

2

Sales of livestock, produce, grains, and other products you raised

3a

Cooperative distributions (Form(s) 1099-PATR) .

3a

 

3b

Taxable amount . . .

4a

Agricultural program payments (see instructions) .

4a

 

4b

Taxable amount . . .

5a

Commodity Credit Corporation (CCC) loans reported under election

b

CCC loans forfeited

5b

 

5c

Taxable amount . . .

6Crop insurance proceeds and federal crop disaster payments (see instructions):

a

Amount received in 2021

. . . . . . .

 

6a

 

6b

Taxable amount . . .

c

If election to defer to 2022 is attached, check here .

. . . . .

6d

Amount deferred from 2020

7

Custom hire (machine work) income

8

Other income, including federal and state gasoline or fuel tax credit or refund (see instructions)

9Gross income. Add amounts in the right column (lines 1c, 2, 3b, 4b, 5a, 5c, 6b, 6d, 7, and 8). If you use the accrual method, enter the amount from Part III, line 50. See instructions . . . . . . . . . . . .

1c

2

3b

4b

5a

5c

6b

6d

7

8

9

Part II

Farm Expenses—Cash and Accrual Method. Do not include personal or living expenses. See instructions.

10

Car and truck expenses (see

 

 

23

Pension and profit-sharing plans . .

23

 

 

instructions). Also attach Form 4562

10

 

24

Rent or lease (see instructions):

 

 

11

Chemicals

11

 

a

Vehicles, machinery, equipment . .

24a

 

12

Conservation expenses (see instructions)

12

 

b

Other (land, animals, etc.) . . . .

24b

 

13

Custom hire (machine work) . . .

13

 

25

Repairs and maintenance . . . .

25

 

14

Depreciation and section 179 expense

 

 

26

Seeds and plants

26

 

 

(see instructions)

 

14

 

27

Storage and warehousing

. . .

27

 

15

Employee benefit programs other than

 

 

28

Supplies

28

 

 

on line 23

 

15

 

29

Taxes

29

 

16

Feed

16

 

30

Utilities

30

 

17

Fertilizers and lime

17

 

31

Veterinary, breeding, and medicine .

31

 

18

Freight and trucking

18

 

32

Other expenses (specify):

 

 

 

19

Gasoline, fuel, and oil

19

 

a

 

 

32a

 

20

Insurance (other than health) . .

20

 

b

 

 

32b

 

21

Interest (see instructions):

 

 

c

 

 

32c

 

a

Mortgage (paid to banks, etc.) . .

21a

 

d

 

 

32d

 

b

Other

21b

 

e

 

 

32e

 

22

Labor hired (less employment credits)

22

 

f

 

 

32f

 

33

Total expenses. Add lines 10 through 32f. If line 32f is negative, see instructions

. .

33

 

34

Net farm profit or (loss). Subtract line 33 from line 9

. . . . . . . . . . . .

34

 

 

If a profit, stop here and see instructions for where to report. If a loss, complete line 36.

 

 

 

35Reserved for future use.

36Check the box that describes your investment in this activity and see instructions for where to report your loss:

a

All investment is at risk.

b

Some investment is not at risk.

 

 

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 11346H

Schedule F (Form 1040) 2021

Schedule F (Form 1040) 2021

Page 2

 

 

Part III

Farm Income—Accrual Method (see instructions)

 

37

Sales of livestock, produce, grains, and other products (see instructions)

38a

Cooperative distributions (Form(s) 1099-PATR) .

 

38a

 

38b

Taxable amount . . .

 

 

 

 

 

 

 

 

39a

Agricultural program payments

 

39a

 

39b

Taxable amount . . .

40Commodity Credit Corporation (CCC) loans:

a

CCC loans reported under election

b

CCC loans forfeited

 

40b

 

40c Taxable amount . . .

 

 

41

Crop insurance proceeds

42

Custom hire (machine work) income

43

Other income (see instructions)

44

Add amounts in the right column for lines 37 through 43 (lines 37, 38b, 39b, 40a, 40c, 41, 42, and 43) . . . .

45Inventory of livestock, produce, grains, and other products at beginning of the year. Do

not include sales reported on Form 4797

45

37

38b

39b

40a

40c

41

42

43

44

46 Cost of livestock, produce, grains, and other products purchased during the year . .

46

47

Add lines 45 and 46

47

48

Inventory of livestock, produce, grains, and other products at end of year . . . .

48

49

Cost of livestock, produce, grains, and other products sold. Subtract line 48 from line 47*

. . . . . . .

49

50

Gross income. Subtract line 49 from line 44. Enter the result here and on Part I, line 9 . . . . . . .

50

*If you use the unit-livestock-price method or the farm-price method of valuing inventory and the amount on line 48 is larger than the amount on line 47, subtract line 47 from line 48. Enter the result on line 49. Add lines 44 and 49. Enter the total on line 50 and on Part I, line 9.

Part IV Principal Agricultural Activity Codes

!

Do not file Schedule F (Form 1040) to report the

following.

• Income from providing agricultural services such as

CAUTION

soil preparation, veterinary, farm labor, horticultural

 

services if your principal source of income is from providing such services. Instead, file Schedule C (Form 1040).

Income from breeding, raising, or caring for dogs, cats, or other pet animals. Instead, file Schedule C (Form 1040).

Income from managing a farm for a fee or on a contract basis. Instead, file Schedule C (Form 1040).

Sales of livestock held for draft, breeding, sport, or dairy purposes. Instead, file Form 4797.

These codes for the Principal Agricultural Activity classify farms by their primary activity to facilitate the administration of the Internal Revenue Code. These six-digit codes are based on the North American Industry Classification System (NAICS).

Select the code that best identifies your primary farming activity and enter the six-digit number on line B.

Crop Production

111100 Oilseed and grain farming

111210 Vegetable and melon farming

111300 Fruit and tree nut farming

111400 Greenhouse, nursery, and floriculture production

111900 Other crop farming

Animal Production

112111 Beef cattle ranching and farming

112112 Cattle feedlots

112120 Dairy cattle and milk production

112210 Hog and pig farming

112300 Poultry and egg production

112400 Sheep and goat farming

112510 Aquaculture

112900 Other animal production

Forestry and Logging

113000 Forestry and logging (including forest nurseries and timber tracts)

113110 Timber tract operations

113210 Forest nurseries and gathering of forest products

113310 Logging

Schedule F (Form 1040) 2021

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1. When filling in the Schedule F Form, make sure to include all of the necessary blanks in its associated form section. This will help hasten the work, allowing your information to be handled without delay and properly.

Learn how to prepare Schedule F Form portion 1

2. Once your current task is complete, take the next step – fill out all of these fields - Part II, Farm ExpensesCash and Accrual, and, Car instructions Also attach Form, expenses, truck, see, Chemicals, Conservation expenses see, Custom hire machine work, Depreciation and section expense, Employee benefit programs other, Feed, Fertilizers and lime, and Freight and trucking with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

Step number 2 in submitting Schedule F Form

3. Completing Check the box that describes your, All investment is at risk, Some investment is not at risk, For Paperwork Reduction Act Notice, Cat No H, and Schedule F Form is essential for the next step, make sure to fill them out in their entirety. Don't miss any details!

Cat No H, For Paperwork Reduction Act Notice, and Check the box that describes your in Schedule F Form

Always be very careful while filling out Cat No H and For Paperwork Reduction Act Notice, since this is where a lot of people make mistakes.

4. This next section requires some additional information. Ensure you complete all the necessary fields - Part III, Farm IncomeAccrual Method see, Sales of livestock produce grains, a Cooperative distributions Forms, a Agricultural program payments, Commodity Credit Corporation CCC, a CCC loans reported under, b CCC loans forfeited, Crop insurance proceeds, Custom hire machine work income, Other income see instructions, b Taxable amount, b Taxable amount, Taxable amount, and Add amounts in the right column - to proceed further in your process!

Filling in part 4 in Schedule F Form

5. When you come near to the end of this document, you'll notice several more things to complete. Particularly, Cost of livestock produce grains, Gross income Subtract line from, If you use the unitlivestockprice, Principal Agricultural Activity, CAUTION, Do not file Schedule F Form to, These codes for the Principal, farms by their primary activity to, activity and enter the sixdigit, Fruit and tree nut farming, Animal Production, Beef cattle ranching and farming, Forestry and Logging Forestry and, and timber tracts Timber tract must be filled out.

Stage # 5 of filling out Schedule F Form

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