Profit or Loss from Farming (1040 Sch F )

Department of the Treasury
Internal Revenue Service

2015 Instructions for Schedule F
Profit or Loss
From Farming

Use Schedule F (Form 1040) to report farm income and expenses. File it with Form
1040, 1040NR, 1041, 1065, or 1065-B.
Your farming activity may subject you to state and local taxes and other requirements such as business licenses and fees. Check with your state and local governments
for more information.
Additional information. Pub. 225 has more information and examples to help you
complete your farm tax return. It also lists important dates that apply to farmers.

Section references are to the Internal Revenue Code unless
otherwise noted.

Form 4797 to report sales, exchanges, or involuntary
conversions (other than from a casualty or theft) of certain farm
property. Also use this form to report sales of livestock held for
draft, breeding, sport, or dairy purposes.
Form 4835 to report rental income based on crop or
livestock shares produced by a tenant if you didn't materially
participate in the management or operation of a farm. This
income isn't subject to self-employment tax. See Pub. 225.
Form 6198 to figure your allowable loss if you have a
business loss and you have amounts invested in the business
for which you aren't at risk.
Form 8582 to figure your allowable loss from passive
activities.
Form 8824 to report like-kind exchanges.
Form 8903 to take a deduction for income from domestic
production activities.
Single-member limited liability company (LLC). Generally,
a single-member domestic LLC isn't treated as a separate entity
for federal income tax purposes. If you are the sole member of
a domestic LLC engaged in the business of farming, file
Schedule F (Form 1040). However, you can elect to treat a domestic LLC as a corporation. See Form 8832 for details on the
election.
Heavy highway vehicle use tax. If you use certain highway
trucks, truck-trailers, tractor trailers, or buses in your farming
business, you may have to pay a federal highway motor vehicle
use tax. See the Instructions for Form 2290 to find out if you
owe this tax and go to www.irs.gov/trucker for the latest developments.
Information returns. You may have to file information returns for wages paid to employees, certain payments of fees
and other nonemployee compensation, interest, rents, royalties,
real estate transactions, annuities, and pensions. For details, see
Line F, later, and the 2015 General Instructions for Certain Information Returns.
If you received cash of more than $10,000 in one or more
related transactions in your farming business, you may have to
file Form 8300. For details, see Pub. 1544.

Future Developments
For the latest information about developments related to Schedule F (Form 1040) and its instructions, such as legislation enacted after they were published, go to www.irs.gov/schedulef.

What's New
Standard mileage rate. The standard mileage rate for business use of your vehicle for 2015 is 57.5 cents per mile.

General Instructions
Other Schedules and Forms You May Have
To File
Schedule E (Form 1040), Part I, to report rental income
from pastureland based on a flat charge. However, report on
Schedule F (Form 1040), line 8, pasture income received from
taking care of someone else's livestock. Also use Schedule E
(Form 1040), Part I, to report farm rental income and expenses
of a trust or estate based on crops or livestock produced by a
tenant.
Schedule J (Form 1040) to figure your tax by averaging
your farm income over the previous 3 years. Doing so may
reduce your tax.
Schedule SE (Form 1040) to pay self-employment tax on
income from your farming business.
Form 3800 to claim any general business credits.
Form 4562 to claim depreciation (including the special
allowance) on assets placed in service in 2015, to claim
amortization that began in 2015, to make an election under
section 179 to expense certain property, or to report
information on vehicles and other listed property.
Form 4684 to report a casualty or theft gain or loss
involving farm business property, including purchased
livestock held for draft, breeding, sport, or dairy purposes. See
Pub. 225 for more information on how to report various farm
losses, such as losses due to death of livestock or damage to
crops or other farm property.

Reportable transaction disclosure statement. If you entered
into a reportable transaction in 2015, you must file Form 8886
to disclose information if your federal income tax liability is affected by your participation in the transaction. You may have
to pay a penalty if you are required to file Form 8886 but do
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Dec 22, 2015

Cat. No. 17152R

Estimated Tax

not do so. You may also have to pay interest and penalties on
any reportable transaction understatements. For more information on reportable transactions, see the Instructions for Form
8886.

If you had to make estimated tax payments for 2015, and you
underpaid your estimated tax, you will not be charged a penalty
if both of the following apply.
Your gross farming or fishing income for 2014 or 2015 is
at least two-thirds of your gross income, and
You file your 2015 tax return and pay the tax due by
March 1, 2016.

Farm Owned and Operated By Spouses
If you and your spouse jointly own and operate a farm as an
unincorporated business and share in the profits and losses, you
can be taxed as a partnership and file Form 1065, or you each
can file Schedule F (Form 1040) as a qualified joint venture.

For details, see chapter 15 of Pub. 225.

Qualified Joint Venture

Specific Instructions

If you and your spouse each materially participate as the only
members of a jointly owned and operated farm, and you file a
joint return for the tax year, you can elect to be treated as a
qualified joint venture instead of a partnership. This election in
most cases will not increase the total tax owed on the joint return, but it does give each of you credit for social security earnings on which retirement benefits are based and for Medicare
coverage without filing a partnership return. For an explanation
of “material participation,” see the instructions for Schedule C
(Form 1040), line G, and Line E, later, in these instructions.
Making the election. To make this election, you must divide
all items of income, gain, loss, deduction, and credit attributable to the farming business between you and your spouse in accordance with your respective interests in the venture. Each of
you must file a separate Schedule F (Form 1040). On each line
of your separate Schedule F (Form 1040), you must enter your
share of the applicable income, deduction, or loss. Each of you
must also file a separate Schedule SE (Form 1040) to pay
self-employment tax, as applicable.
As long as you remain qualified, your election can't be revoked without IRS consent.
For more information on qualified joint ventures, go to
IRS.gov and enter “qualified joint venture” in the search box.

Filers of Forms 1041, 1065, and 1065-B. Do not complete
the block labeled “Social security number (SSN).” Instead, enter the employer identification number (EIN) issued to the estate, trust, or partnership on line D.

Line B
On line B, enter one of the 14 principal agricultural activity
codes listed in Part IV on page 2 of Schedule F (Form 1040).
Select the code that best describes the source of most of your
income.

Line C
If you use the cash method, check the box for “Cash.” Complete Schedule F (Form 1040), Parts I and II. In most cases, report income in the year in which you actually or constructively
received it and deduct expenses in the year you paid them.
However, if the payment of an expenditure creates an asset
having a useful life that extends substantially beyond the close
of the year, it may not be deductible or may be deductible only
in part for the year of the payment. See chapter 2 of Pub. 225.
If you use an accrual method, check the box for “Accrual.”
Complete Schedule F (Form 1040), Parts II, III, and Part I,
line 9. Generally, report income in the year in which you
earned it and deduct expenses in the year you incurred them,
even if you didn't pay them in that year. Accrual basis taxpayers are put on a cash basis for deducting business expenses owed to a related cash-basis taxpayer. Other rules determine the
timing of deductions based on economic performance. See Pub.
538.
Farming syndicates. Farming syndicates can't use the cash
method of accounting. A farming syndicate may be a partnership, LLC, S corporation, or any other enterprise other than a C
corporation if:
The interests in the business have at any time been offered
for sale in a way that would require registration with any federal or state agency, or
More than 35% of the losses during any tax year are allocable to limited partners or limited entrepreneurs. A limited
partner is one who can lose only the amount invested or required to be invested in the partnership. A limited entrepreneur
is a person who doesn't take any active part in managing the
business.

Exception—Community Income
If you and your spouse wholly own an unincorporated farming
business as community property under the community property
laws of a state, foreign country, or U.S. possession, you can
treat your wholly owned, unincorporated business as a sole
proprietorship, instead of a partnership. Any change in your reporting position will be treated as a conversion of the entity.
Report your income and deductions as follows.
If only one spouse participates in the business, all of the
income from that business is the self-employment earnings of
the spouse who carried on the business.
If both spouses participate, the income and deductions are
allocated to the spouses based on their distributive shares.
If either or both you and your spouse are partners in a
partnership, see Pub. 541.
If you and your spouse elected to treat the business as a
qualifying joint venture, see Qualified Joint Venture, earlier,
for how to report income and deductions.
The only states with community property laws are Arizona,
California, Idaho, Louisiana, Nevada, New Mexico, Texas,
Washington, and Wisconsin.

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Line D

Line F

Enter on line D the employer identification number (EIN) that
was issued to you on Form SS-4. Don't enter your SSN. Don't
enter another taxpayer's EIN (for example, from any Forms
1099-MISC that you received). If you don't have an EIN,
leave line D blank.

If you made any payments in 2015 that would require you to
file any Forms 1099, check the “Yes” box. Otherwise, check
the “No” box. See the 2015 General Instructions for Certain Information Returns if you are unsure whether you are required
to file any Forms 1099. Also see the separate specific instructions for each Form 1099.

You need an EIN only if you have a qualified retirement
plan or are required to file employment, excise, alcohol, tobacco, or firearms returns, or if you are a payer of gambling winnings. If you need an EIN, see the Instructions for Form SS-4.
Single-member LLCs. If you are a sole owner of an LLC that
isn't treated as a separate entity for federal income tax purposes, you may have an EIN that was issued to the LLC (and in
the LLC's legal name) if you are required to file employment
tax returns and certain excise tax returns. However, you should
enter on line D only the EIN issued to you and in your
name as the sole proprietor of your farming business. If you
don't have such an EIN, leave line D blank. Don't enter on line
D the EIN issued to the LLC.
Single-member limited liability companies (LLCs) with employees. Single-member LLCs that are disregarded as entities
separate from their owner for federal tax purposes are required
to file employment tax returns using the LLC's name and EIN
rather than the LLC owner's name and EIN. For more information, see the Instructions for Form SS-4.
Filers of Forms 1041, 1065, and 1065-B. Enter on line D the
EIN issued to the estate, trust, or partnership.

Generally, you must file Form 1099-MISC if you paid
at least $600 in rents, services, prizes, medical and
health care payments, and other income payments.
The Guide to Information Returns in the 2015 General Instructions for Certain Information Returns has more information,
including the due dates for the various information returns.

TIP

Part I. Farm Income—Cash
Method
In Part I, show income received for items listed on lines 1
through 8. In most cases, include both the cash actually or constructively received and the fair market value of goods or other
property received for these items. Income is constructively received when it is credited to your account or set aside for you
to use. However, price loss coverage payments or agricultural
risk coverage payments received under the Agricultural Act of
2014 are required to be included in income only in the year of
actual receipt.

Line E

If you ran the farm yourself and received rents based on
crop shares or farm production, report these rents as income on
line 2.
Sales of livestock because of weather-related conditions. If
you sold livestock because of drought, flood, or other weather-related conditions, you can elect to report the income from
the sale in the year after the year of sale if all of the following
apply.
Your main business is farming.
You can show that you sold the livestock only because of
weather-related conditions.
Your area qualified for federal aid.
See chapter 3 of Pub. 225 for details.
Chapter 11 bankruptcy. If you were a debtor in a chapter 11
bankruptcy case during 2015, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040 (under Income) and the
Instructions for Schedule SE (Form 1040).
Forms 1099 or CCC-1099-G. If you received Forms 1099 or
CCC-1099-G showing amounts paid to you, first determine if
the amounts are to be included with farm income. Then use the
following chart to determine where to report the income on
Schedule F (Form 1040). Include the Form 1099 or
CCC-1099-G amounts in the total amount reported on that line.

Material participation. For the definition of material participation for purposes of the passive activity rules, see the instructions for Schedule C (Form 1040), line G. If you meet any of
the material participation tests described in those instructions,
check the “Yes” box.
If you are a retired or disabled farmer, you are treated as
materially participating in a farming business if you materially
participated 5 or more of the 8 years preceding your retirement
or disability. Also, a surviving spouse is treated as materially
participating in a farming activity if he or she actively manages
the farm and the real property used for farming meets the estate
tax rules for special valuation of farm property passed from a
qualifying decedent.
Check the “No” box if you didn't materially participate. If
you checked “No” and you have a loss from this business, see
Limit on passive losses next. If you have a profit from this
business activity but have current year losses from other passive activities or prior year unallowed passive activity losses,
see the Instructions for Form 8582.
Limit on passive losses. If you checked the “No” box and you
have a loss from this business, you may have to use Form 8582
to figure your allowable loss, if any, to enter on Schedule F
(Form 1040), line 34. In most cases, you can deduct losses
from passive activities only to the extent of income from passive activities. For details, see Pub. 925.

F-3

Where to
report

1099-PATR . . . . . . . . . . . . . . . . . . . . . . .
1099-A . . . . . . . . . . . . . . . . . . . . . . . . .
1099-MISC for crop insurance . . . . . . . . . . . .
1099-G or CCC-1099-G

Line 3a
Line 5b
Line 6a

sults from redemption of the commodity because you previously reported the CCC loan proceeds as income. You are treated
as repurchasing the commodity for the amount of the loan repayment. However, if you didn't report the CCC loan proceeds
under the election, you must report the market gain on line 4b.

for disaster payments . . . . . . . . . . . . . .

Line 6a

Lines 5a Through 5c

for other agricultural program payments . . .

Line 4a

Form

Commodity Credit Corporation (CCC) loans. In most cases, you don't report CCC loan proceeds as income. However,
if you pledge part or all of your production to secure a CCC
loan, you can elect to report the loan proceeds as income in the
year you receive them. If you make this election (or made the
election in a prior year), report loan proceeds you received in
2015 on line 5a. Attach a statement to your return showing the
details of the loan(s). See chapter 3 of Pub. 225.
Forfeited CCC loans. Include the full amount forfeited on
line 5b, even if you reported the loan proceeds as income. This
amount may be reported to you on Form 1099-A.
If you didn't elect to report the loan proceeds as income, also include the forfeited amount on line 5c.
If you did elect to report the loan proceeds as income, you
generally will not have an entry on line 5c. But if the amount
forfeited is different from your basis in the commodity, you
may have an entry on line 5c.
See chapter 3 of Pub. 225 for details on the tax consequences of electing to report CCC loan proceeds as income or forfeiting CCC loans.
If you received a CCC loan in 2015, your farm losses may
be reduced. See Excess farm loss rules in Line 35, later, for
more details.

You may receive Form 1099-MISC for other types of income. In this case, report it on whichever line best describes
the income. For example, if you receive a Form 1099-MISC for
custom farming work, include this amount on line 7.

Lines 3a and 3b
If you received distributions from a cooperative in 2015, you
should receive a Form 1099-PATR. On line 3a, show your total
distributions from cooperatives. This includes patronage dividends, nonpatronage distributions, per-unit retain allocations,
and redemptions of nonqualified written notices of allocation
and per-unit retain certificates.
Show patronage dividends received in cash and the dollar
amount of qualified written notices of allocation. If you received property as patronage dividends, report the fair market
value of the property as income. Include cash advances received from a marketing cooperative. If you received per-unit
retains in cash, show the amount of cash. If you received qualified per-unit retain certificates, show the stated dollar amount
of the certificates.
Don't include as income on line 3b patronage dividends
from buying personal or family items, capital assets, or depreciable assets. Enter these amounts on line 3a only. Because you
don't report patronage dividends from these items as income,
you must subtract the amount of the dividend from the cost or
other basis of these items.

Lines 6a Through 6d
In most cases, you must report crop insurance proceeds in the
year you receive them. Federal crop disaster payments are
treated as crop insurance proceeds. However, if 2015 was the
year of damage, you can elect to include certain proceeds in income for 2016. To make this election, check the box on line 6c
and attach a statement to your return. See chapter 3 of Pub. 225
for a description of the proceeds for which an election can be
made and for what you must include in your statement.

Lines 4a and 4b
Enter on line 4a the total of the following amounts.
Price loss coverage payments.
Agriculture risk coverage payments.
Market gain from the repayment of a secured Commodity
Credit Corporation (CCC) loan for less than the original loan
amount.
Diversion payments.
Cost-share payments (sight drafts).
Payments in the form of materials (such as fertilizer or
lime) or services (such as grading or building dams).

If you elect to defer any eligible crop insurance proceeds,
you must defer all such crop insurance proceeds (including federal crop disaster payments) from a single trade or business.
Enter on line 6a the total crop insurance proceeds you received in 2015, even if you elect to include them in income for
2016.
Enter on line 6b the taxable amount of the proceeds you received in 2015. Don't include proceeds you elect to include in
income for 2016.

These amounts are government payments you received and are
usually reported to you on Form 1099-G. You may also receive
Form CCC-1099-G from the Department of Agriculture showing the amounts and types of payments made to you.

Enter on line 6d the amount, if any, of crop insurance proceeds you received in 2014 and elected to include in income
for 2015.

On line 4b, report only the taxable amount. For example,
don't report the market gain shown on Form CCC-1099-G on
line 4b if you elected to report CCC loan proceeds as income in
the year received (see Lines 5a Through 5c next). No gain re-

F-4

Personal or living expenses (such as taxes, insurance, or
repairs on your home) that don't produce farm income.
Expenses of raising anything you or your family used.
The value of animals you raised that died.
Inventory losses.
Personal losses.

Line 8
Enter on line 8 income not otherwise reportable on lines 1
through 7. This includes the following types of income.
Illegal federal irrigation subsidies. See chapter 3 of Pub.
225.
Bartering income.
Income from cancellation of debt. In most cases, if a debt
is canceled or forgiven, you must include the canceled amount
in income. If a federal agency, financial institution, or credit
union canceled or forgave a debt you owed of $600 or more, it
should send you a Form 1099-C, or similar statement, by January 31, 2016, showing the amount of debt canceled in 2015.
However, you may be able to exclude the canceled debt from
income. See Pub. 4681 for details.
State gasoline or fuel tax refunds you received in 2015.
Any amount included in income from line 2 of Form
6478, Biofuel Producer Credit.
Any amount included in income from line 8 of Form
8864, Biodiesel and Renewable Diesel Fuels Credit.
The amount of credit for federal tax paid on fuels claimed
on your 2014 Form 1040. For information on including the
credit in income, see chapter 2 of Pub. 510.
Any recapture of excess depreciation on any listed property, including any section 179 expense deduction, if the business
use percentage of that property decreased to 50% or less in
2015. Use Part IV of Form 4797 to figure the recapture. See the
instructions for Schedule C (Form 1040), line 13, for the definition of listed property.
The inclusion amount on leased listed property (other than
vehicles) when the business use percentage drops to 50% or
less. See chapter 5 of Pub. 946 to figure the amount.
Any recapture of the deduction or credit for clean-fuel vehicle refueling property or alternative fuel vehicle refueling
property used in your farming business. For details on how to
figure recapture, see Regulations section 1.179A-1.
Any income from breeding fees, or fees from renting
teams, machinery, or land that isn't reported on Schedule E
(Form 1040) or Form 4835.
The gain or loss on the sale of commodity futures contracts if the contracts were made to protect you from price
changes. These are a form of business insurance and are considered hedges. If you had a loss in a closed futures contract,
enclose the amount of the loss in parentheses.

If you were repaid for any part of an expense, you must subtract the amount you were repaid from the deduction.
Capitalizing costs of property. If you produced real or tangible personal property or acquired property for resale, certain
expenses must be included in inventory costs or capitalized.
These expenses include the direct costs of the property and the
share of any indirect costs allocable to that property. However,
these rules generally do not apply to expenses of:
1. Producing any plant that has a preproductive period of 2
years or less;
2. Raising animals; or
3. Replanting certain crops if they were lost or damaged by
reason of freezing temperatures, disease, drought, pests, or
casualty.
Exceptions (1) and (2) do not apply to tax shelters,
farming syndicates, partnerships, or corporations reCAUTION
quired to use the accrual method of accounting under
section 447 or 448(a)(3).

!

If you capitalize your expenses, don't reduce your deductions on lines 10 through 32e by the capitalized expenses. Instead, enter the total amount capitalized in parentheses on
line 32f (to indicate a negative amount) and enter “263A” in
the space to the left of the total. See Preproductive period expenses, later, for details.
But you may be able to currently deduct rather than capitalize the expenses of producing a plant with a preproductive period of more than 2 years. See Election to deduct certain preproductive period expenses next.
Election to deduct certain preproductive period expenses.
If the preproductive period of any plant you produce is more
than 2 years, you can elect to currently deduct the expenses
rather than capitalize them. But you can't make this election for
the costs of planting or growing citrus or almond groves incurred before the end of the fourth tax year beginning with the tax
year you planted them in their permanent grove. You are treated as having made the election by deducting the preproductive
period expenses in the first tax year for which you can make
this election and by applying the special rules, discussed later.

For property acquired and hedging positions established, you must clearly identify on your books and
CAUTION
records both the hedging transaction and the item(s)
or aggregate risk being hedged.

!

In the case of a partnership or S corporation, the
election must be made by the partner, shareholder, or
CAUTION
member. This election can't be made by tax shelters,
farming syndicates, partnerships, or corporations required to
use the accrual method of accounting under section 447 or
448(a)(3).

!

Purchase or sales contracts aren't true hedges if they offset
losses that already occurred. If you bought or sold commodity
futures with the hope of making a profit due to favorable price
changes, report the profit or loss on Form 6781 instead of this
line.

Unless you obtain IRS consent, you must make this election
for the first tax year in which you engage in a farming business
involving the production of property subject to the capitalization rules. You can't revoke this election without IRS consent.

Part II. Farm Expenses
Do not deduct the following.

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Special rules. If you make the election to deduct preproductive expenses for plants:
Any gain you realize when disposing of the plants is ordinary income up to the amount of the preproductive expenses
you deducted, and
The alternative depreciation rules apply to property
placed in service in any tax year your election is in effect.
For details, see Uniform Capitalization Rules in chapter 6 of
Pub. 225.

Show depreciation on line 14 and rent or lease payments
on line 24a.
If you claim any car or truck expenses (actual or the standard mileage rate), you must provide the information requested
on Form 4562, Part V. Be sure to attach Form 4562 to your return.
For details, see chapter 4 of Pub. 463.

Line 12

Prepaid farm supplies. In most cases, if you use the cash
method of accounting and your prepaid farm supplies are more
than 50% of your other deductible farm expenses, your deduction for those supplies may be limited. Prepaid farm supplies
include expenses for feed, seed, fertilizer, and similar farm supplies not used or consumed during the year.
They also include the cost of poultry that would be allowable as a deduction in a later tax year if you were to:
1. Capitalize the cost of poultry bought for use in your
farming business and deduct it ratably over the lesser of 12
months or the useful life of the poultry, and
2. Deduct the cost of poultry bought for resale in the year
you sell or otherwise dispose of it.

Deductible conservation expenses generally are those that are
paid to conserve soil and water for land used in farming, to prevent erosion of land used for farming, or for endangered species recovery. These expenses include (but aren't limited to)
costs for the following.
The treatment or movement of earth, such as leveling,
grading, conditioning, terracing, contour furrowing, and the restoration of soil fertility.
The construction, control, and protection of diversion
channels, drainage ditches, irrigation ditches, earthen dams,
watercourses, outlets, and ponds.
The eradication of brush.
The planting of windbreaks.
The achievement of site-specific management actions recommended in recovery plans approved pursuant to the Endangered Species Act of 1973.

If the limit applies, you can deduct prepaid farm supplies
that don't exceed 50% of your other deductible farm expenses
in the year of payment. You can deduct the excess only in the
year you use or consume the supplies (other than poultry,
which is deductible as explained above). For details and exceptions to these rules, see chapter 4 of Pub. 225.
Whether or not this 50% limit applies, your expenses for
livestock feed paid during the year but consumed in a later year
may be subject to the rules explained in the line 16 instructions.

These expenses can be deducted only if they are consistent
with a conservation plan approved by the Natural Resources
Conservation Service of the Department of Agriculture or a recovery plan approved pursuant to the Endangered Species Act
of 1973, for the area in which your land is located. If no plan
exists, the expenses must be consistent with a plan of a comparable state agency. You can't deduct the expenses if they were
paid or incurred for land used in farming in a foreign country.

Line 10

Don't deduct expenses you paid or incurred to drain or fill
wetlands, or to prepare land for center pivot irrigation systems.

You can deduct the actual expenses of operating your car or
truck or take the standard mileage rate. You must use actual expenses if you used five or more vehicles simultaneously in your
farming business (such as in fleet operations). You can't use actual expenses for a leased vehicle if you previously used the
standard mileage rate for that vehicle.

Your deduction can't exceed 25% of your gross income
from farming (excluding certain gains from selling assets such
as farm machinery and land). If your conservation expenses are
more than the limit, the excess can be carried forward and deducted in later tax years. However, the amount deductible for
any one year can't exceed the 25% gross income limit for that
year.

You can take the standard mileage rate for 2015 only if you:
Owned the vehicle and used the standard mileage rate for
the first year you placed the vehicle in service, or
Leased the vehicle and are using the standard mileage rate
for the entire lease period.

For details, see chapter 5 of Pub. 225.

Line 13

If you take the standard mileage rate:
Multiply the number of business miles driven by 57.5
cents, and
Add to this amount your parking fees and tolls, and enter
the total on line 10.

Enter amounts paid for custom hire or machine work (the machine operator furnished the equipment).
Don't include amounts paid for rental or lease of equipment
you operated yourself. Instead, report those amounts on
line 24a.

Don't deduct depreciation, rent or lease payments, or your
actual operating expenses.

Line 14

If you deduct actual expenses:
Include on line 10 the business portion of expenses for
gasoline, oil, repairs, insurance, license plates, etc.; and

You can deduct depreciation of buildings, improvements, cars
and trucks, machinery, and other farm equipment of a permanent nature.

F-6

Don't deduct depreciation on your home, furniture or other
personal items, land, livestock you bought or raised for resale,
or other property in your inventory.

Line 20
Deduct on this line premiums paid for farm business insurance.
Deduct on line 15 amounts paid for employee accident and
health insurance. Amounts credited to a reserve for self-insurance or premiums paid for a policy that pays for your lost earnings due to sickness or disability aren't deductible. For details,
see chapter 6 of Pub. 535.

You can also elect under section 179 to expense a portion of
the cost of certain property you bought in 2015 for use in your
farming business. The section 179 election is made on Form
4562.
For information about depreciation and the section 179 deduction, see Pub. 946 and chapter 7 of Pub. 225. For details on
the special depreciation allowance, see chapter 3 of Pub. 946.

Lines 21a and 21b
Interest allocation rules. The tax treatment of interest expense differs depending on its type. For example, home mortgage interest and investment interest are treated differently.
“Interest allocation” rules require you to allocate (classify)
your interest expense so it is deducted (or capitalized) on the
correct line of your return and receives the right tax treatment.
These rules could affect how much interest you are allowed to
deduct on Schedule F (Form 1040).
In most cases, you allocate interest expense by tracing how
the proceeds of the loan are used. See chapter 4 of Pub. 535 for
details.
If you paid interest on a debt secured by your main home
and any of the proceeds from that debt were used in your farming business, see chapter 4 of Pub. 535 to figure the amount to
include on lines 21a and 21b.
How to report. If you have a mortgage on real property used
in your farming business (other than your main home), enter on
line 21a the interest you paid for 2015 to banks or other financial institutions for which you received a Form 1098 (or similar
statement). If you didn't receive a Form 1098, enter the interest
on line 21b.
If you paid more mortgage interest than is shown on Form
1098, see chapter 4 of Pub. 535 to find out if you can deduct
the additional interest. If you can, include the amount on
line 21a. Attach a statement to your return explaining the difference and enter “See attached” in the margin next to line 21a.
If you and at least one other person (other than your spouse
if you file a joint return) were liable for and paid interest on the
mortgage and the other person received the Form 1098, include
your share of the interest on line 21b. Attach a statement to
your return showing the name and address of the person who
received the Form 1098. In the margin next to line 21b, enter
“See attached.”
Don't deduct interest you prepaid in 2015 for later years; include only the part that applies to 2015.

See the Instructions for Form 4562 for information on when
you must complete and attach Form 4562.

Line 15
Deduct contributions to employee benefit programs that aren't
an incidental part of a pension or profit-sharing plan included
on line 23. Examples are accident and health plans, group-term
life insurance, and dependent care assistance programs. If you
made contributions on your behalf as a self-employed person to
a dependent care assistance program, complete Form 2441,
Parts I and III, to figure your deductible contributions to that
program.
Contributions you made on your behalf as a self-employed
person to an accident and health plan or for group-term life insurance aren't deductible on Schedule F (Form 1040). However, you may be able to deduct on Form 1040, line 29 (or on
Form 1040NR, line 29), the amount you paid for health insurance on behalf of yourself, your spouse, and dependent(s) even
if you don't itemize your deductions. See the instructions for
Form 1040, line 29, or Form 1040NR, line 29, for details.
You must reduce your line 15 deduction by the amount of
any credit for small employer health insurance premiums determined on Form 8941. See Form 8941 and its instructions to determine which expenses are eligible for the credit.

Line 16
If you use the cash method, you can't deduct when paid the cost
of feed your livestock will consume in a later year unless all of
the following apply.
The payment was for the purchase of feed rather than a
deposit.
The prepayment had a business purpose and wasn't made
merely to avoid tax.
Deducting the prepayment will not materially distort your
income.

Line 22
Enter the amounts you paid for farm labor. Don't include
amounts paid to yourself. Reduce your deduction by the
amounts claimed on:
Form 5884, Work Opportunity Credit, line 2;
Form 8844, Empowerment Zone Employment Credit,
line 2;
Form 8845, Indian Employment Credit, line 4; and
Form 8932, Credit for Employer Differential Wage Payments, line 2.

If all of the above apply, you can deduct the prepaid feed
when paid, subject to the overall limit for Prepaid farm supplies, explained earlier. If all of the above don't apply, you can
deduct the prepaid feed only in the year it is consumed.

Line 18
Don't include the cost of transportation incurred in purchasing
livestock held for resale as freight paid. Instead, add these costs
to the cost of the livestock.

F-7

Include the cost of boarding farm labor but not the value of
any products they used from the farm. Include only what you
paid household help to care for farm laborers.

Social security and Medicare taxes you paid to match
what you are required to withhold from farm employees' wages.
Federal unemployment tax.
Federal highway use tax.
Contributions to state unemployment insurance fund or
disability benefit fund if they are considered taxes under state
law.

If you provided taxable fringe benefits to your employees, such as personal use of a car, don't include
CAUTION
in farm labor the amounts you depreciated or deducted elsewhere.

!

Line 23

Do not deduct the following taxes on this line.
Federal income taxes, including your self-employment
tax. However, you can deduct one-half of self-employment tax
on Form 1040, line 27, or Form 1040NR, line 27.
Estate and gift taxes.
Taxes assessed for improvements, such as paving and
sewers.
Taxes on your home or personal use property.
State and local sales taxes on property purchased for use
in your farming business. Instead, treat these taxes as part of
the cost of the property.
Other taxes not related to your farming business.

Enter your deduction for contributions to employee pension,
profit-sharing, or annuity plans. If the plan included you as a
self-employed person, enter contributions made as an employer
on your behalf on Form 1040, line 28 (or on Form 1040NR,
line 28), not on Schedule F (Form 1040).
In most cases, you must file the applicable form listed next
if you maintain a pension, profit-sharing, or other funded-deferred compensation plan. The filing requirement isn't affected
by whether or not the plan qualified under the Internal Revenue
Code, or whether or not you claim a deduction for the current
tax year. There is a penalty for failure to timely file these
forms.
Form 5500-EZ. File this form if you have a one-participant
retirement plan that meets certain requirements. A one-participant plan is a plan that covers only you (or you and your
spouse).
Form 5500-SF. File this form electronically with the Department of Labor (at www.efast.dol.gov) if you have a small plan
(fewer than 100 participants in most cases) that meets certain
requirements.
Form 5500. File this form electronically with the Department
of Labor (at www.efast.dol.gov) for a plan that doesn't meet the
requirements for filing Form 5500-EZ or Form 5500-SF.

Line 30
Enter amounts you paid for gas, electricity, water, and other
utilities for business use on the farm. Don't include personal
utilities. You can't deduct the base rate (including taxes) of the
first telephone line into your residence, even if you use it for
your farming business. But you can deduct expenses you paid
for your farming business that are more than the cost of the
base rate for the first phone line. For example, if you had a second phone line, you can deduct the business percentage of the
charges for that line, including the base rate charges.

Lines 32a Through 32f
Include all ordinary and necessary farm expenses not deducted
elsewhere on Schedule F (Form 1040), such as advertising, office supplies, etc. Don't include fines or penalties paid to a government for violating any law.

For details, see Pub. 560.

Lines 24a and 24b
If you rented or leased vehicles, machinery, or equipment, enter on line 24a the business portion of your rental cost. But if
you leased a vehicle for a term of 30 days or more, you may
have to reduce your deduction by an inclusion amount. See
Leasing a Car in chapter 4 of Pub. 463 to figure this amount.

At-risk loss deduction. Any loss from this activity that wasn't
allowed last year because of the at-risk rules is treated as a deduction allocable to this activity in 2015.

Enter on line 24b amounts paid to rent or lease other property such as pasture or farmland.

Business start-up costs. If your farming business began in
2015, you can elect to deduct up to $5,000 of certain business
start-up costs. The $5,000 limit is reduced (but not below zero)
by the amount by which your start-up costs exceed $50,000.
Your remaining start-up costs can be amortized over a
180-month period, beginning with the month the farming business began. For details, see chapters 4 and 7 of Pub. 225. For
amortization that begins in 2015, you must complete and attach
Form 4562.

Bad debts. See chapter 10 of Pub. 535.

Line 25
Enter amounts you paid for incidental repairs and maintenance
of farm buildings, machinery, and equipment that don't add to
the property's value or appreciably prolong its life.
Don't deduct repairs or maintenance on your home.

Business use of your home. You may be able to deduct certain expenses for business use of your home, subject to limitations. You may also be able to use a simplified method to figure your deduction. Use the appropriate worksheets in Pub. 587
to figure your allowable deduction. Don't use Form 8829.

Line 29
You can deduct the following taxes on this line.
Real estate and personal property taxes on farm business
assets.

F-8

line 34 until you have figured the amount of prior year unallowed passive activity losses you may claim this year for this
activity. Use Form 8582 to figure the amount of prior year unallowed passive activity losses you may include on line 34.
Make sure to indicate that you are including prior year passive
activity losses by entering "PAL" to the left of the entry space.
If you checked the "No" box on line E, see the Instructions
for Form 8582; you may need to include information from this
schedule on that form, even if you have a net profit.

Excess farm loss deduction. Any loss from this activity that
wasn't allowed last year because of the excess farm loss rules is
treated as a deduction allocable to this activity in 2015.
Forestation and reforestation costs. Reforestation costs are
generally capital expenditures. However, for each qualified
timber property, you can elect to expense up to $10,000
($5,000 if married filing separately) of qualifying reforestation
costs paid or incurred in 2015.
You can elect to amortize the remaining costs over 84
months. For amortization that begins in 2015, you must complete and attach Form 4562.
The amortization election doesn't apply to trusts, and the expense election doesn't apply to estates and trusts. For details on
reforestation expenses, see chapters 4 and 7 of Pub. 225.

Partnerships. Subtract line 33 from line 9. If the amount is
a loss, the partners may need to apply the excess farm loss
rules, the at-risk rules, and the passive activity loss rules to determine the amount of their allowable loss.
Reporting your net profit or allowable loss. Once you have
figured your net profit or allowable loss, report it as follows.

Legal and professional fees. You can include on this line fees
charged by accountants and attorneys that are ordinary and
necessary expenses directly related to your farming business.
Include fees for tax advice and for the preparation of tax forms
related to your farming business. Also include expenses incurred in resolving asserted tax deficiencies related to your farming business.
Tools. You can deduct the amount you paid for tools that have
a short life or cost a small amount, such as shovels and rakes.

Individuals. Enter your net profit or allowable loss on
line 34 and on Form 1040, line 18, and Schedule SE (Form
1040), line 1a.
Nonresident aliens. Enter the net profit or allowable loss
on line 34 and on Form 1040NR, line 19. You should also enter
this amount on Schedule SE (Form 1040), line 1a, if you are
covered under the U.S. social security system due to an international social security agreement currently in effect. See the Instructions for Schedule SE (Form 1040) for information on international social security agreements.

Travel, meals, and entertainment. In most cases, you can deduct expenses for farm business travel and 50% of your business meals and entertainment. But there are exceptions and
limitations. See the instructions for Schedule C (Form 1040),
lines 24a and 24b.

Partnerships. Enter the net profit or loss on line 34 and on
Form 1065, line 5 (or Form 1065-B, line 7). Because the excess
farm loss rules are applied at the partner level, the partnership
will notify each partner on the Schedule K-1 if the partnership
received one of the subsidies discussed later. Each partner
should complete one of the excess farm loss worksheets to determine if there is an excess farm loss.

Preproductive period expenses. If you had preproductive period expenses in 2015 that you are capitalizing, enter the total
of these expenses in parentheses on line 32f (to indicate a negative amount) and enter “263A” in the space to the left of the total.
For details, see Capitalizing costs of property, earlier, and
Uniform Capitalization Rules in chapter 6 of Pub. 225.

Trusts and estates. Enter the net profit or allowable loss on
line 34 and on Form 1041, line 6.
Community income. If you and your spouse had community
income and are filing separate returns, see the Instructions for
Schedule SE (Form 1040) before figuring self-employment tax.
Earned income credit. If you have a net profit on line 34, this
amount is earned income and may qualify you for the earned
income credit if you meet certain conditions. See the instructions for Form 1040, lines 66a and 66b, for details.
Conservation Reserve Program (CRP) payments. If you received social security retirement or disability benefits in addition to CRP payments, the CRP payments aren't subject to
self-employment tax. You will deduct these payments from
your net farm profit or loss on Schedule SE (Form 1040),
line 1b. Don't make any adjustment on Schedule F (Form
1040).

Line 33
If line 32f is a negative amount, subtract it from the total of
lines 10 through 32e. Enter the result on line 33.

Line 34
Figuring your net profit or allowable loss. If line 33 is more
than line 9, don't enter your loss on line 34 until you have applied the excess farm loss rules, the at-risk rules, and the passive activity loss rules. To apply these rules, follow the instructions for lines 35 and 36, and the Instructions for Form 8582.
After applying these rules, the amount on line 34 will be your
allowable loss, and it may be smaller than the amount figured
by subtracting line 33 from line 9.
If line 9 is more than line 33, and you don't have prior year
unallowed passive activity losses, subtract line 33 from line 9.
The result is your net profit.
If line 9 is more than line 33, and you have prior year unallowed passive activity losses, don't enter your net profit on

Line 35
Answer line 35 with respect to your farming business (defined
later), and not just for the farming activities reported on this
Schedule F. You may also have reported farming activities on
another Schedule F or on Form 4835.

F-9

Check the “Yes” box if you received any Commodity Credit
Corporation loan in 2015 or you are a partner or shareholder in
a partnership or S corporation that received any Commodity
Credit Corporation loan in 2015.
Check the "No" box if you didn't receive a Commodity
Credit Corporation loan in 2015.
If you checked the “Yes” box, your farm loss may be reduced. You must apply the excess farm loss rules, discussed
next.

TIP

If you checked the "No" box, you don't have excess
farm loss.

Excess farm loss rules. If you received proceeds from a Commodity Credit Corporation loan, part of your loss may be excess farm loss. Excess farm loss isn't an allowable loss. Instead,
excess farm loss is carried forward to the next year and treated
as a deduction.
Your excess farm loss for a year is the amount by which
your total deductions from your farming businesses exceed
your total gross income or gain from your farming businesses,
plus a threshold amount. The threshold amount is the greater of
$300,000 ($150,000 if your filing status is married filing separately) or your total net profit or loss from farming businesses
for the last five years (2010–2014), including for each of those
years any net gain from the sale of property used in your farming businesses.
Farming business defined. A farming business generally
is the trade or business of farming, including operating a nursery or sod farm or raising or harvesting of trees bearing fruit,
nuts, or other crops, or ornamental trees, such as evergreen
trees, if they are cut within the first 6 years.
For purposes of calculating your excess farm loss for the
year, a farming business also includes the following.
A trade or business of processing a farm commodity, even
if it isn't incidental to your farm.
Participating in a cooperative that processes a farm commodity.
Any interest in a partnership or S corporation involved in
a farming business.
Figuring your excess farm loss. To figure your excess farm
loss, you can use one of the excess farm loss worksheets, later.
You may need to adjust your income or deductions before figuring your excess farm loss.
If you file multiple copies of Schedule F (Form 1040),
Schedule C (Form 1040), or Schedule E (Form 1040) as part of
your farming businesses, you must combine the income, deductions, and net gain/loss for purposes of determining whether
you have an excess farm loss on the worksheets. If you sold
any property used in your farming businesses, you must include any gain or loss on the sale of that property (reported on
Form 4797, Sales of Business Property, Form 8949, Sales and
Other Dispositions of Capital Assets, or Schedule D (Form
1040), Capital Gains and Losses). Be sure to include the gain
or loss attributable to property used in your farming business
(defined earlier). Don't include gain or loss attributable to property used in nonfarming businesses or nonbusiness property.

Activities reported on other forms. Because your farming
business includes any trade or business of processing a farm
commodity that isn't incidental to your farm, you may have
farming business activities that are reported on Schedule C
(Form 1040) that you must also include when figuring your excess farm loss. Any losses from a farming business activity reported on Schedule C (Form 1040) may be limited by the excess farm loss rules.
Because your farming business includes your interest in a
partnership or S corporation, you may have farming business
activities that are reported on Schedule E (Form 1040) that you
must also include when figuring your excess farm loss. Any
losses from a farming business activity reported on Schedule E
(Form 1040) may be limited by the excess farm loss rules.
Other deductions that must be included. Certain deductions, including the domestic production activities deduction
under section 199 and the deduction for one-half of self-employment tax, may need to be included when determining your
excess farm loss if the deductions are attributable to your farming business (defined earlier).
In particular, the deduction for one-half of self-employment
tax will not be attributable to your farming business on Schedule F (Form 1040) or your business of processing a farm commodity on Schedule C (Form 1040) if the combined amounts
on those schedules produce a loss. But the deduction for
one-half of self-employment tax should be taken into account
when the combined amounts on those schedules produce income (or the farm optional method on Schedule SE (Form
1040) is used) and there is a large loss on Schedule E (Form
1040) passed through from a partnership or S corporation.
Deductions that aren't included. Any deduction for losses
arising from fire, storm, or other casualty, or from disease or
drought involving any farming business shouldn't be included
when determining your excess farm loss.
Coordination with at-risk and passive activity loss rules.
You must calculate and apply your excess farm loss before calculating any limits due to the at-risk rules or the passive activity loss rules.
Excess farm loss worksheets. You may complete one of
these worksheets to determine if you have an excess farm loss
in 2015. Don't attach these worksheets to your return; keep
them for your records. You will need them next year when any
excess farm loss may be deducted. Which worksheet you
should use depends on the nature and extent of your farming
business.
Use Worksheet 1 if your farming businesses include only
profit or loss reported on one or more Schedules F (Form
1040).
Use Worksheet 2 if your farming businesses include
Schedule F (Form 1040) and any Schedule C (Form 1040) activity of processing a farm commodity.
Use Worksheet 3 if your farming businesses include
Schedule F (Form 1040) and a Schedule E (Form 1040) interest
in a partnership or S corporation involved in a farming business.
Use Worksheet 4 if your farming businesses include
Schedule F (Form 1040), Schedule C (Form 1040) activity of

F-10

processing a farm commodity, a Schedule E (Form 1040) interest in a partnership or S corporation involved in a farming business, and farm rental income or loss reported on Form 4835.
Use Worksheet 5 if your farming business is limited to
only farm rental income or loss reported on Form 4835.
Applying your excess farm loss. You must reduce your loss
by the amount of your excess farm loss. Subtract line 33 from
line 9 and reduce the number by your excess farm loss. Complete line 36 before entering an amount on line 34.
Example. Subtracting line 33 from line 9 results in
($400,000). You have only one farming business and use
Worksheet 1 to figure an excess farm loss of ($100,000). Your
allowable loss is reduced to ($300,000). This will be the
amount you enter on line 34 unless the at-risk or passive activity loss rules reduce it further.
Any loss from this activity not allowed for 2015 because of
the excess farm loss rules is treated as a deduction allocable to
the activity in 2016.
At-risk and passive activity loss rules. Use your loss reduced by the excess farm loss to calculate any further limitations due to the at-risk rules or passive activity loss rules.
More than one farming business. If you have more than
one farming business with a loss this year, allocate the excess
farm loss amount on a pro rata basis among those farming businesses. If you have more than one farming business, but only
one has a loss, allocate all of the excess farm loss to the farming business with the loss. Don't allocate excess farm loss to a
farming business that has a net profit.

Line 36
TIP

Figuring your allowable loss. Before determining your allowable loss, you must check box 36a or 36b to determine if
your loss from farming is limited by the at-risk rules. Follow
the instructions below that apply to your box 36 activity.
All investment is at risk. If all your investment amounts are
at risk in this activity, check box 36a. If you also checked the
“Yes” box on line E, your remaining loss (after applying the
excess farm loss rules) is your allowable loss. The at-risk rules
and the passive activity loss rules don't apply. See Line 34, earlier, for how to report your allowable loss.
But if you checked the “No” box on line E, you may need to
complete Form 8582 to figure your allowable loss to enter on
line 34. See the Instructions for Form 8582.
Some investment isn't at risk. If some investment isn't at
risk, check box 36b; the at-risk rules apply to your loss. Be sure
to attach Form 6198 to your return.
If you also checked the “Yes” box on line E, complete Form
6198 to determine the amount of your allowable loss. The passive activity loss rules don't apply. See Line 34, earlier, for how
to report your allowable loss.
But if you checked the “No” box on line E, the passive activity loss rules may apply. First complete Form 6198 to figure
the amount of your profit or loss for the at-risk activity, which
may include amounts reported on other forms and schedules,
and the at-risk amount for the activity. Follow the Instructions
for Form 6198 to determine how much of your Schedule F loss
will be allowed. After you figure the amount of your loss that
is allowed under the at-risk rules, you may need to complete
Form 8582 to figure the allowable loss to enter on line 34. See
the Instructions for Form 8582 for details.

You do not need to complete line 36 if line 9 is more
than line 33.

!

CAUTION

At-risk rules. In most cases, if you have a loss from a farming
activity and amounts invested in the activity for which you
aren't at risk, you must complete Form 6198 to figure your allowable loss. The at-risk rules generally limit the amount of
loss (including loss on the disposition of assets) you can claim
to the amount you could actually lose in the activity.
Check box 36b if you have amounts invested in this activity
for which you aren't at risk, such as the following.
Nonrecourse loans used to finance the activity, to acquire
property used in the activity, or to acquire the activity that
aren't secured by your own property (other than property used
in the activity). However, there is an exception for certain nonrecourse financing borrowed by you in connection with holding
real property.
Cash, property, or borrowed amounts used in the activity
(or contributed to the activity, or used to acquire the activity)
that are protected against loss by a guarantee, stop-loss agreement, or other similar arrangement (excluding casualty insurance and insurance against tort liability).
Amounts borrowed for use in the activity from a person
who has an interest in the activity, other than as a creditor, or
who is related under section 465(b)(3)(C) to a person (other
than you) having such an interest.

If you checked box 36b because some investment isn't
at risk and you don't attach Form 6198, the processing of your return may be delayed.

At-risk loss deduction. Any loss from this activity not allowed for 2015 only because of the at-risk rules is treated as a
deduction allocable to the activity in 2016.
More information. For details, see Pub. 925 and the Instructions for Form 6198.

Part III. Farm Income—Accrual
Method
You may be required to use the accrual accounting method. If
you use the accrual method, report farm income when you earn
it, not when you receive it. In most cases, you must include animals and crops in your inventory if you use this method. See
Pub. 225 for exceptions, inventory methods, how to change
methods of accounting, and rules that require certain costs to
be capitalized or included in inventory. For information about
accounting periods, see Pub. 538, Accounting Periods and
Methods.

F-11

Chapter 11 bankruptcy. If you were a debtor in a chapter 11
bankruptcy case during 2015, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040 (under Income) and the
Instructions for Schedule SE (Form 1040).

Lines 38a Through 40c
See the instructions for lines 3a through 5c.

Line 43
See Line 8, earlier.
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the
United States. You are required to give us the information. We
need it to ensure that you are complying with these laws and to
allow us to figure and collect the right amount of tax.
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or

records relating to a form or its instructions must be retained as
long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for
individual taxpayers filing this form is included in the estimates shown in the instructions for their individual income tax
return. The estimated burden for all other taxpayers who file
this form is approved under OMB control number 1545-1975
and is shown next.
Recordkeeping . . . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form. . . . . . . . . . .
Preparing and sending the form to the IRS . . . . . .

7 hr., 1 min.
2 hr., 55 min.
1 hr., 46 min.

If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we
would be happy to hear from you. See the instructions for the
tax return with which this form is filed.

F-12

Excess Farm Loss Worksheet 1

Keep for Your Records

Complete this worksheet for Schedule F (Form 1040) farming business only.
In determining if you have an excess farm loss, do not take into account any deductions for losses arising by reason of fire, storm, or other casualty, or by
! reason of disease or drought, involving your farming business.
CAUTION

1. Enter the amount from your 2015 Schedule(s) F (Form 1040), line 33. Is
this amount less than $300,000 ($150,000 if married filing separately)? If
yes, stop here. You do not have an excess farm loss in 2015. If no, continue
to line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Subtract $300,000 ($150,000 if married filing separately) from
line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Enter the amount from your 2015 Schedule(s) F (Form 1040),
line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Is line 3 greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss in 2015. If no,
continue to line 5.
5. Enter your net gain/loss from the sale of farming business property reported
on Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Enter your net gain/loss from the sale of farming business property reported
on Form 8949 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Combine line 5 and line 6. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Add line 3 and line 7. Is this greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss
in 2015. If no, continue to line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Enter the amount from your 2014 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

10. Enter your combined net gain/loss from the sale of farming business
property reported on your 2014 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

11. Enter the amount from your 2013 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11.

12. Enter your combined net gain/loss from the sale of farming business
property reported on your 2013 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12.

13. Enter the amount from your 2012 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13.

14. Enter your combined net gain/loss from the sale of farming business
property reported on your 2012 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14.

15. Enter the amount from your 2011 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15.

16. Enter your combined net gain/loss from the sale of farming business
property reported on your 2011 Form 4797 and Schedule D (Form 1040). If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16.

17. Enter the amount from your 2010 Schedule(s) F (Form 1040),
line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17.

18. Enter your combined net gain/loss from the sale of farming business
property reported on your 2010 Form 4797 and Schedule D (Form 1040). If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18.

19. Combine lines 9 through 18. If zero or less, enter -0-

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

19.

20. Enter the greater of line 19 or $300,000 ($150,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . . . .

20.

21. Add line 8 and line 20

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

21.

22. Excess farm loss. Subtract line 1 from line 21. If zero or less, you have an excess farm loss that reduces the
amount of loss you can deduct this year. If you have more than one farming business with an overall loss this year,
allocate the excess farm loss amount on a pro rata basis among those farming businesses . . . . . . . . . . . . . . . . .

22.

F-13

Excess Farm Loss Worksheet 2
Before you begin:

Keep for Your Records

See Excess farm loss worksheets, earlier, to determine if you should use this worksheet.

Complete this worksheet for Schedule F (Form 1040) farming businesses and Schedule C (Form 1040) activity of processing a farm commodity.

!

CAUTION

In determining if you have an excess farm loss, do not take into account any deductions for losses arising by reason of fire, storm, or other casualty, or by reason of
disease or drought, involving your farming businesses.

1. Enter the amount from your 2015 Schedule(s) F (Form 1040),
line 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter the total amount from your 2015 Schedule(s) C (Form 1040), line 28
and line 30, for activity of processing a farm commodity . . . . . . . . . . . .

2.

3. Add lines 1 and 2. Is this amount less than $300,000 ($150,000 if married filing separately)? If yes, stop here. You
do not have an excess farm loss in 2015. If no, continue to line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Subtract $300,000 ($150,000 if married filing separately) from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Enter the amount from your 2015 Schedule(s) F (Form 1040),
line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Enter the amount from your 2015 Schedule(s) C (Form 1040),
line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Combine line 5 and line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Is line 7 greater than or equal to line 4? If yes, stop here. You do not have an excess farm loss in 2015. If no,
continue to line 9.
9. Enter your net gain/loss from the sale of farming business property reported
on Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Enter your net gain/loss from the sale of farming business property reported
on Form 8949 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

11. Combine line 9 and line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11.

12. Add line 7 and line 11. Is this greater than or equal to line 4? If yes, stop here. You do not have an excess farm
loss in 2015. If no, continue to line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12.

13. Enter the amount from your 2014 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13.

14. Enter the amount from your 2014 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14.

15. Enter your combined net gain/loss from the sale of farming business
property reported on your 2014 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15.

16. Enter the amount from your 2013 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16.

17. Enter the amount from your 2013 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17.

18. Enter your combined net gain/loss from the sale of farming business
property reported on your 2013 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18.

19. Enter the amount from your 2012 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19.

20. Enter the amount from your 2012 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20.
(Continued on next page)

F-14

Excess Farm Loss Worksheet 2 (Continued)
21. Enter your combined net gain/loss from the sale of farming business
property reported on your 2012 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21.

22. Enter the amount from your 2011 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22.

23. Enter the amount from your 2011 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23.

24. Enter your combined net gain/loss from the sale of farming business
property reported on your 2011 Form 4797 and Schedule D (Form 1040). If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24.

25. Enter the amount from your 2010 Schedule(s) F (Form 1040),
line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25.

26. Enter the amount from your 2010 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26.

27. Enter your combined net gain/loss from the sale of farming business
property reported on your 2010 Form 4797 and Schedule D (Form 1040). If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27.

28. Combine lines 13 through 27. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28.

29. Enter the greater of line 28 or $300,000 ($150,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . . .

29.

30. Add lines 12 and 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30.

31. Excess farm loss. Subtract line 3 from line 30. If zero or less, you have an excess farm loss that reduces the
amount of loss you can deduct this year. If you have more than one farming business with an overall loss this year,
allocate the excess farm loss amount on a pro rata basis among those farming businesses . . . . . . . . . . . . . . . .

31.

F-15

Excess Farm Loss Worksheet 3
Before you begin:

Keep for Your Records

See Excess farm loss worksheets, earlier, to determine if you should use this worksheet.

Complete this worksheet for Schedule F (Form 1040) farming businesses and Schedule E (Form 1040) partnership or S corporation income or loss from
farming businesses.
In determining if you have an excess farm loss, do not take into account any deductions for losses arising by reason of fire, storm, or other casualty, or
!
by reason of disease or drought, involving your farming businesses.
CAUTION

Note: When instructed to enter an amount from line 30, 31, or 32 of Schedule E, include only the amount on that line that relates to farming businesses.

.....

1.

2. Enter the amount from your 2015 Schedule(s) E (Form 1040), line 31, for
interest in a partnership or S corporation involved in farming
businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1. Enter the amount from your 2015 Schedule(s) F (Form 1040), line 33

2.

3. Add lines 1 and 2. Is this amount less than $300,000 ($150,000 if married filing separately)? If yes, stop here.
You do not have an excess farm loss in 2015. If no, continue to line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Subtract $300,000 ($150,000 if married filing separately) from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Enter the amount from your 2015 Schedule(s) F (Form 1040), line 9 . . . . . .

5.

6. Enter the amount from your 2015 Schedule(s) E (Form 1040), line 30 . . . . .

6.

7. Combine line 5 and line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Is line 7 greater than or equal to line 4? If yes, stop here. You do not have an excess farm loss in 2015. If no,
continue to line 9.
9. Enter your net gain/loss from the sale of farming business property reported
on Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
10. Enter your net gain/loss from the sale of farming business property reported
on Form 8949 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

11. Combine line 9 and line 10. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11.

12. Add line 7 and line 11. Is this greater than or equal to line 4? If yes, stop here. You do not have an excess farm
loss in 2015. If no, continue to line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12.

13. Enter the amount from your 2014 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13.

14. Enter the amount from your 2014 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14.

15. Enter your combined net gain/loss from the sale of farming business property
reported on your 2014 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15.

16. Enter the amount from your 2013 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16.

17. Enter the amount from your 2013 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17.

18. Enter your combined net gain/loss from the sale of farming business property
reported on your 2013 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18.

19. Enter the amount from your 2012 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19.

20. Enter the amount from your 2012 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20.
(Continued on next page)

F-16

Excess Farm Loss Worksheet 3 (Continued)
21. Enter your combined net gain/loss from the sale of farming business property
reported on your 2012 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21.

22. Enter the amount from your 2011 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22.

23. Enter the amount from your 2011 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23.

24. Enter your combined net gain/loss from the sale of farming business property
reported on your 2011 Form 4797 and Schedule D (Form 1040). If zero or
less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24.

25. Enter the amount from your 2010 Schedule(s) F (Form 1040),
line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25.

26. Enter the amount from your 2010 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26.

27. Enter your combined net gain/loss from the sale of farming business property
reported on your 2010 Form 4797 and Schedule D (Form 1040). If zero or
less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27.

28. Combine lines 13 through 27. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28.

29. Enter the greater of line 28 or $300,000 ($150,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . .

29.

30. Add lines 12 and 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30.

31. Excess farm loss. Subtract line 3 from line 30. If zero or less, you have an excess farm loss that reduces the
amount of loss you can deduct this year. If you have more than one farming business with an overall loss this
year, allocate the excess farm loss amount on a pro rata basis among those farming businesses . . . . . . . . . . . .

31.

F-17

Excess Farm Loss Worksheet 4
Before you begin:

Keep for Your Records

See Excess farm loss worksheets, earlier, to determine if you should use this worksheet.

Complete this worksheet for Schedule F (Form 1040) farming businesses , Schedule C (Form 1040) activity of processing a farm commodity, Schedule E
(Form 1040) partnership or S corporation income or loss from farming businesses, and Form 4835 rental income or loss.
In determining if you have an excess farm loss, do not take into account any deductions for losses arising by reason of fire, storm, or other casualty, or by
! reason of disease or drought, involving your farming businesses.
CAUTION

Note: When instructed to enter an amount from line 30, 31, or 32 of Schedule E, include only the amount on that line that relates to farming businesses.

1. Enter the amount from your 2015 Schedule(s) F (Form 1040),
line 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter the total amount from your 2015 Schedule(s) C (Form 1040), line 28
and line 30, for activity of processing a farm commodity . . . . . . . . . . . .

2.

3. Enter the amount from your 2015 Schedule(s) E (Form 1040), line 31, for
interest in a partnership or S corporation involved in farming
businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Enter the amount from your 2015 Form 4835, line 31 . . . . . . . . . . . . . .

4.

5. Add lines 1, 2, 3, and 4. Is this amount less than $300,000 ($150,000 if married filing separately)? If yes, stop
here. You do not have an excess farm loss in 2015. If no, continue to line 6 . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Subtract $300,000 ($150,000 if married filing separately) from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Enter the amount from your 2015 Schedule(s) F (Form 1040),
line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Enter the amount from your 2015 Schedule(s) C (Form 1040),
line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Enter the amount from your 2015 Schedule(s) E (Form 1040),
line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

10. Enter the amount from your 2015 Form 4835, line 7 . . . . . . . . . . . . . . .

10.

11. Combine lines 7, 8, 9, and 10

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

11.

12. Is line 11 greater than or equal to line 6? If yes, stop here. You do not have an excess farm loss in 2015. If no,
continue to line 13.
13. Enter your net gain/loss from the sale of farming business property reported
on Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.
14. Enter your net gain/loss from the sale of farming business property reported
on Form 8949 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Combine line 13 and line 14. If zero or less, enter -0-

14.

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

15.

16. Add lines 11 and 15. Is this greater than or equal to line 6? If yes, stop here. You do not have an excess farm loss
in 2015. If no, continue to line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16.

TIP: Lines 17 through 43 help you calculate the threshold amount discussed in the instructions. The threshold
amount is the greater of $300,000 ($150,000 if married filing separately) or your total net profit or loss from
farming businesses for the last five years (2010–2014), including for each of those years any net gain from the
sale of property used in your farming businesses.
17. Enter the amount from your 2014 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.
18. Enter the amount from your 2014 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18.

19. Enter the amount from your 2014 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19.

20. Enter the amount from your 2014 Form 4835, line 32 . . . . . . . . . . . . . .

20.

21. Enter your combined net gain/loss from the sale of farming business
property reported on your 2014 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21.

22. Enter the amount from your 2013 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22.

23. Enter the amount from your 2013 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23.

24. Enter the amount from your 2013 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24.

25. Enter the amount from your 2013 Form 4835, line 32 . . . . . . . . . . . . . .

25.

26. Enter your combined net gain/loss from the sale of farming business
property reported on your 2013 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26.

27. Enter the amount from your 2012 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27.

28. Enter the amount from your 2012 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28.
(Continued on next page)

F-18

Excess Farm Loss Worksheet 4 (Continued)
29.

Enter the amount from your 2012 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29.

30.

Enter the amount from your 2012 Form 4835, line 32 . . . . . . . . . . . . . .

30.

31.

Enter your combined net gain/loss from the sale of farming business
property reported on your 2012 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31.

Enter the amount from your 2011 Schedule(s) F (Form 1040),
line 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32.

Enter the amount from your 2011 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33.

Enter the amount from your 2011 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34.

35.

Enter the amount from your 2011 Form 4835, line 32 . . . . . . . . . . . . . .

35.

36.

Enter your combined net gain/loss from the sale of farming business
property reported on your 2011 Form 4797 and Schedule D (Form 1040). If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

36.

Enter the amount from your 2010 Schedule(s) F (Form 1040),
line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

37.

Enter the amount from your 2010 Schedule(s) C (Form 1040),
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38.

39.

Enter the amount from your 2010 Schedule(s) E (Form 1040),
line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39.

40.

Enter the amount from your 2010 Form 4835, line 32 . . . . . . . . . . . . . .

40.

41.

Enter your combined net gain/loss from the sale of farming business
property reported on your 2010 Form 4797 and Schedule D (Form 1040). If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41.

32.
33.
34.

37.
38.

42.

Combine lines 17 through 41. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

42.

43.

Enter the greater of line 42 or $300,000 ($150,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . . . .

43.

44.

Add lines 16 and 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

44.

45.

Excess farm loss. Subtract line 5 from line 44. If zero or less, you have an excess farm loss that reduces the
amount of loss you can deduct this year. If you have more than one farming business with an overall loss this year,
allocate the excess farm loss amount on a pro rata basis among those farming businesses . . . . . . . . . . . . . . . . .

45.

F-19

Excess Farm Loss Worksheet 5
Before you begin:

Keep for Your Records

See Excess farm loss worksheets, earlier, to determine if you should use this worksheet.

Complete this worksheet for Form 4835 farm rental income or loss from farming business.
In determining if you have an excess farm loss, do not take into account any deductions for losses arising by reason of fire, storm, or other casualty, or by
! reason of disease or drought, involving your farming business.
CAUTION

1. Enter the amount from your 2015 Form 4835, line 31. Is this amount less
than $300,000 ($150,000 if married filing separately)? If yes, stop here.
You do not have an excess farm loss in 2015. If no, continue to
line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Subtract $300,000 ($150,000 if married filing separately) from
line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Enter the amount from your 2015 Form 4835, line 7 . . . . . . . . . . . . . . .

3.

4. Is line 3 greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss in 2015. If no,
continue to line 5.
5. Enter your net gain/loss from the sale of farming business property reported
on Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Enter your net gain/loss from the sale of farming business property reported
on Form 8949 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Combine line 5 and line 6. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Add line 3 and line 7. Is this greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss
in 2015. If no, continue to line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Enter the amount from your 2014 Form 4835, line 32 . . . . . . . . . . . . . .

9.

10. Enter your combined net gain/loss from the sale of farming business
property reported on your 2014 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

11. Enter the amount from your 2013 Form 4835, line 32 . . . . . . . . . . . . . .

11.

12. Enter your combined net gain/loss from the sale of farming business
property reported on your 2013 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12.

13. Enter the amount from your 2012 Form 4835, line 32 . . . . . . . . . . . . . .

13.

14. Enter your combined net gain/loss from the sale of farming business
property reported on your 2012 Form 4797 and Form 8949. If zero or less,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14.

15. Enter the amount from your 2011 Form 4835, line 32 . . . . . . . . . . . . . .

15.

16. Enter your combined net gain/loss from the sale of farming business
property reported on your 2011 Form 4797 and Schedule D (Form 1040). If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16.

17. Enter the amount from your 2010 Form 4835, line 32 . . . . . . . . . . . . . .

17.

18. Enter your combined net gain/loss from the sale of farming business
property reported on your 2010 Form 4797 and Schedule D (Form 1040). If
zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18.

19. Combine lines 9 through 18. If zero or less, enter -0-

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

19.

20. Enter the greater of line 19 or $300,000 ($150,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . . .

20.

21. Add lines 8 and 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21.

22. Excess farm loss. Subtract line 1 from line 21. If zero or less, you have an excess farm loss that reduces the
amount of loss you can deduct this year. If you have more than one farming business with an overall loss this
year, allocate the excess farm loss amount on a pro rata basis among those farming businesses . . . . . . . . . . . . .

22.

F-20