Rural Tax Education

Tax Topics

disaster tax information

Disaster Tax Information

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).

new farmer tax 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.

tribal tax information

Tribal Tax Information

There are some conditions that will allow income from farming and ranching to be exempt from federal income and self-employment taxes for farming on trust property. However, not all tribal members will meet those conditions.

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

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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.

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current tax topic
Taxpayers may be allowed to deduct the costs of prepaid purchases in the year that the purchases are made, rather than the year in which such items are used. This article will give more information about prepaid farm expenses.
Prepaid Farm Expenses

Prepaid Farm Expenses

Taxpayers may be allowed to deduct the costs of prepaid purchases in the year that the purchases are made, rather than the year in which such items are used. This article will give more information about prepaid farm expenses.

current tax topic
tax topics
new farmer tax topics
Knowing the deadline to file your federal income tax return is important, as late filing can generate penalties. In addition, taxpayers should know when tax payments are due because payments can be a major expense to consider in cash flow planning.
Filings Dates and Estimated Tax Payments

Filings Dates and Estimated Tax Payments

Knowing the deadline to file your federal income tax return is important, as late filing can generate penalties. In addition, taxpayers should know when tax payments are due because payments can be a major expense to consider in cash flow planning.

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This article gives a basic explanation of the AMT and some examples of situations that cause taxpayers to pay the AMT.
Alternative Minimum Tax

Alternative Minimum Tax

This article gives a basic explanation of the AMT and some examples of situations that cause taxpayers to pay the AMT.

current tax topic
inflation reduction act assistance
tax topics
This publication presents the basics of the 2022 farm loan immediate relief program, the tax consequences, tax management methods to consider, and farm management considerations. Additionally, this publication updates, with possible options to consider, d
Farm Loan Immediate Relief Under Inflation Reduction Act: Income Tax Options Triggered by Corrected 1099s

Farm Loan Immediate Relief Under Inflation Reduction Act: Income Tax Options Triggered by Corrected 1099s

This publication presents the basics of the 2022 farm loan immediate relief program, the tax consequences, tax management methods to consider, and farm management considerations. Additionally, this publication updates, with possible options to consider, d...

current tax topic
disaster tax info
tax topics
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.

current tax topic
tax topics
De minimis safe harbor is the focus of this fact sheet. The de minimis safe harbor provides a tax planning opportunity which can be used by farmers and ranchers to simplify their accounting and annual records.
Tangible Property Regulations: De Minimis Safe Harbor

Tangible Property Regulations: De Minimis Safe Harbor

De minimis safe harbor is the focus of this fact sheet. The de minimis safe harbor provides a tax planning opportunity which can be used by farmers and ranchers to simplify their accounting and annual records.

current tax topic
tax topics
This fact sheet reviews the IRS Form 1099-G and provides examples of various federal government programs which may be reported to farmers and ranchers over the course of their respective business operations.
Government Payments: Form 1099-G

Government Payments: Form 1099-G

This fact sheet reviews the IRS Form 1099-G and provides examples of various federal government programs which may be reported to farmers and ranchers over the course of their respective business operations.

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current tax topic
This article is an overview of tax deductions for the farm business.
What Are Deductible Business Expenses?

What Are Deductible Business Expenses?

This article is an overview of tax deductions for the farm business.

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tax topics
The purpose of this fact sheet is to discuss and illustrate correct income tax reporting when business assets are sold.
Sale of Business Property

Sale of Business Property

The purpose of this fact sheet is to discuss and illustrate correct income tax reporting when business assets are sold.

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current tax topic
Income tax rules apply to expenses that are incurred and paid before a business exists. These expenses are referred to as “start-up expenditures” or “start-up costs.” The IRS provides guidance relative to the deductibility of these start-up costs for any
Start-Up Costs: Correct Reporting by Farmers for Income Tax Purposes

Start-Up Costs: Correct Reporting by Farmers for Income Tax Purposes

Income tax rules apply to expenses that are incurred and paid before a business exists. These expenses are referred to as “start-up expenditures” or “start-up costs.” The IRS provides guidance relative to the deductibility of these start-up costs for any ...

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.

tribal tax topics
tax topics
current tax topic
There are some conditions that will allow income from farming and ranching to be exempt from federal income and self-employment taxes for farming on trust property. However, not all tribal members will meet those conditions.
When is Tribal Farm and Ranch Income Exempt from Federal Taxes?

When is Tribal Farm and Ranch Income Exempt from Federal Taxes?

There are some conditions that will allow income from farming and ranching to be exempt from federal income and self-employment taxes for farming on trust property. However, not all tribal members will meet those conditions.

current tax topic
tax topics
tribal tax topics
inflation reduction act assistance
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 ...

new farmer tax topics
tax topics
current tax topic
tribal 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...

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...

new farmer tax topics
tax topics
current tax topic
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.

new farmer tax topics
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
current tax topic
tax topics
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...

current tax topic
tax topics
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...

new farmer tax topics
current tax topic
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
current tax topic
tax topics
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.

tax topic
current tax topic
tax topics
USDA-FSA from the Inflation Reduction Act is providing program payments for debt relief to farmers that are in financial distress.
Inflation Reduction Act Assistance for Distressed Borrowers | Rural Tax Education

Inflation Reduction Act Assistance for Distressed Borrowers

USDA-FSA from the Inflation Reduction Act is providing program payments for debt relief to farmers that are in financial distress.