Rural Tax Education

Tax Topics

disaster info
New Farmer Tax Information

Useful topics for beginning farmers. The linked fact sheets are a good place to start to get basic information you may need as you consider your tax situation.

New Farmer Tax Info
disaster info
Disaster Tax Inforation

There are special tax provisions for sales of livestock more than normal because of weather conditions. Personal and business losses may be deductible due to disasters (i.e. fire, flood, hurricane, tornado).

Disaster Tax Info

Archived Topics

See archived tax topics Please note: these articles are archived due to year-to-year changes in legislation, rules, etc. While the basis holds true and these articles can be helpful for background information or understanding, specifics may no longer be valid. You can also see more information by visiting related links.

Current Topics

tax topics
current tax topic
Essentially all farmers, ranchers, and other agricultural producers must file a federal tax return and pay federal income and/or self-employment taxes on their net profit.
Introduction to Agricultural Federal Tax Issues

Introduction to Agricultural Federal Tax Issues

Essentially all farmers, ranchers, and other agricultural producers must file a federal tax return and pay federal income and/or self-employment taxes on their net profit.

current tax topic
tax topics
This publication will break down federal estate and gift taxation into its basic components, which will include estate taxes, gift taxes, lifetime exclusions, annual exclusions, and portability of the deceased spouse’s unused estate tax exclusion.
Estate and Gift Tax

Estate and Gift Tax

This publication will break down federal estate and gift taxation into its basic components, which will include estate taxes, gift taxes, lifetime exclusions, annual exclusions, and portability of the deceased spouse’s unused estate tax exclusion.

new farmer tax topics
current tax topic
tax topics
Form 1099 is used to report various forms of income other than wages, salaries, and tips to the Internal Revenue Service (IRS) and to the recipient of the payment. Agricultural producers may both receive Form 1099 information returns and be required to is
Form 1099 Information Returns

Form 1099 Information Returns

Form 1099 is used to report various forms of income other than wages, salaries, and tips to the Internal Revenue Service (IRS) and to the recipient of the payment. Agricultural producers may both receive Form 1099 information returns and be required to is...

current tax topic
inflation reduction act assistance
tax topics
The Inflation Reduction Act of 2022 was signed by the President in August. The act, through Section 22008, repealed the Farm Loan Assistance Section 1005 of the American Rescue Plan of 2021 (ARP). Section 1005 of ARP was replaced with Section 22006, Farm
Farm Loan Immediate Relief for Borrowers with At-Risk Agricultural Operations

Farm Loan Immediate Relief for Borrowers with At-Risk Agricultural Operations

The Inflation Reduction Act of 2022 was signed by the President in August. The act, through Section 22008, repealed the Farm Loan Assistance Section 1005 of the American Rescue Plan of 2021 (ARP). Section 1005 of ARP was replaced with Section 22006, Farm ...

current tax topic
tax topics
new farmer tax topics
Most taxpayers working for an employer have FICA and Medicare withheld from their wages. The amount withheld is matched by their employer. Consequently, they will receive retirement and medical benefits when they reach retirement age.
Self-Employment Tax

Self-Employment Tax

Most taxpayers working for an employer have FICA and Medicare withheld from their wages. The amount withheld is matched by their employer. Consequently, they will receive retirement and medical benefits when they reach retirement age.

tax topics
new farmer tax topics
current tax topic
The hobby loss rules which determine whether a venture is a business or a hobby, is a frequently misunderstood area of tax law that causes producers who are experiencing difficult economic times to worry, perhaps unnecessarily, that the venture will be vi
Farm Losses versus Hobby Losses: Farmers Must Plan Ahead to Avoid Adverse Tax Consequences

Farm Losses versus Hobby Losses: Farmers Must Plan Ahead to Avoid Adverse Tax Consequences

The hobby loss rules which determine whether a venture is a business or a hobby, is a frequently misunderstood area of tax law that causes producers who are experiencing difficult economic times to worry, perhaps unnecessarily, that the venture will be vi...

tax topics
new farmer tax topics
current tax topic
A self-employed individual must pay self-employment (SE) tax on earned income to be entitled to receive social security benefits. These benefits include retirement, disability, and survivor benefits as well as Medicare coverage, all of which are important
The Optional Method of Paying Self-Employment Tax

The Optional Method of Paying Self-Employment Tax

A self-employed individual must pay self-employment (SE) tax on earned income to be entitled to receive social security benefits. These benefits include retirement, disability, and survivor benefits as well as Medicare coverage, all of which are important...

new farmer tax topics
tax topics
current tax topic
Choosing the right accountant or tax return preparer can be a crucial decision for farmers, ranchers and forest landowners. Part of this important decision is based on personality, but there are some key questions that should be asked of potential (and ma
How to Choose a Tax Professional

How to Choose a Tax Professional

Choosing the right accountant or tax return preparer can be a crucial decision for farmers, ranchers and forest landowners. Part of this important decision is based on personality, but there are some key questions that should be asked of potential (and ma...

tax topics
current tax topic
If I promised you $1,000 today or offered to give you $1,250 in five years, would you wait? What factors are important as you decide whether to take money today or wait? How would you decide whether taking a costly action today was going to be worth it in
Time Value of Money

Time Value of Money

If I promised you $1,000 today or offered to give you $1,250 in five years, would you wait? What factors are important as you decide whether to take money today or wait? How would you decide whether taking a costly action today was going to be worth it in...

current tax topic
new farmer tax topics
tax topics
Meeting the qualifications of farming and being a farmer under the Internal Revenue Code (IRC) allows for special benefits; however, not all agricultural producers meet these qualifications even if they are producing agricultural products, which is why it
Farm, Farming and Who’s a Farmer for Tax Purposes

Farm, Farming and Who’s a Farmer for Tax Purposes

Meeting the qualifications of farming and being a farmer under the Internal Revenue Code (IRC) allows for special benefits; however, not all agricultural producers meet these qualifications even if they are producing agricultural products, which is why it...

disaster tax info
tax topics
current tax topic
There are two provisions in tax law that attempt to cushion producers from the consequences of adverse weather-related livestock sales.
Weather-Related Sales of Livestock

Weather-Related Sales of Livestock

There are two provisions in tax law that attempt to cushion producers from the consequences of adverse weather-related livestock sales.

current tax topic
tax topics
disaster tax info
The dollar value of property losses due to fires, floods, tornadoes, earthquakes, lightning, freezes, etc. can be substantial. Federal income tax regulations often provide relief by allowing deductions for losses of business-use property.
Disaster Losses and Related Tax Rules

Disaster Losses and Related Tax Rules

The dollar value of property losses due to fires, floods, tornadoes, earthquakes, lightning, freezes, etc. can be substantial. Federal income tax regulations often provide relief by allowing deductions for losses of business-use property.