Federal Tax Form 6198 for the purpose of declaring how much investment you have at risk. The activity of farming is an activity for which it is required.
I do my own taxes. I just finished 2016. It amazes me how anyone ever shows a profit. Considering:
farm truck mileage at 54 cents per mile cost me $9,011.52 and I exclude personal use. Honest.
depreciation of fence, structures, truck, equipment, trailer
liability insurance - my farm insurance is now $1,267.66. It covers my equipment, structures, cows, and liability
property taxes
feed and hay cost
fertilizer and lime
fuel
supplies
repairs and maintenance
seeding
utilities - my utilities cost last year was $1,567.12
veterinarian/breeding/vaccination/fly control/parasite control
labor
My question is: Are you filing a 6198?
I do my own taxes. I just finished 2016. It amazes me how anyone ever shows a profit. Considering:
farm truck mileage at 54 cents per mile cost me $9,011.52 and I exclude personal use. Honest.
depreciation of fence, structures, truck, equipment, trailer
liability insurance - my farm insurance is now $1,267.66. It covers my equipment, structures, cows, and liability
property taxes
feed and hay cost
fertilizer and lime
fuel
supplies
repairs and maintenance
seeding
utilities - my utilities cost last year was $1,567.12
veterinarian/breeding/vaccination/fly control/parasite control
labor
My question is: Are you filing a 6198?