Farms 2018

Farm Inventory and Accounting Methods 2018

Most businesses use either the cash method or the accrual method of accounting. Most small farming businesses use the cash method of accounting. This handout covers other accounting methods and inventory valuation issues unique to the farming business.

HIGHLIGHTS:

  • Uniform Capitalization Rules.
  • Inventory Valuation Methods.
  • Crop Method of Accounting.

Farm Vehicles and Fuels 2018

This handout provides a method for farmers to keep track of fuel expenses. It also explains the requirements for claiming fuel tax credit and refund.

HIGHLIGHTS:

  • Record of fuels used for farming.
  • Farm vehicles.
  • Standard mileage rate and actual expense method.
  • Five or more farm vehicles.
  • Business use percentage.
  • Fuel tax credits and refunds.

Farm Expenses Worksheet

This worksheet provides a way for farmers to keep track of farm expenses. This handout can be used as a ledger to enter daily information or be used as a summary of expenses to provide to the tax preparer.

HIGHLIGHTS:

  • Farm expenses worksheet and depreciation worksheet.
  • Prepaid farm supplies.
  • Real estate taxes paid on farm land.
  • Soil and water conservation expenses.

Farm Income Worksheet

This worksheet provides a way for farmers to keep track of income from farming operations. This handout can be used as a ledger to enter daily information or be used as a summary of income to provide to the tax preparer.

HIGHLIGHTS:

  • Farm income worksheet.
  • Agricultural program payments.
  • Crop insurance and crop disaster payments.
  • Feed assistance.