Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 29, 2024 6:57:58 AM

Consequences of filing Schedule C when you are farming and selling purchased product

If my am a Floriculture Farmer, planting seed and selling my farm floral products along with purchased floral products and my deprecation consist of:

1. Building  2. Irrigation system 1 3. Irrigation System 2 4. Truck 5. Land Improvements 6. Cooler

2.  Schedule C Previous Deprecation # 2 15 HY 150DB, #3 7 HY200DB,  #5 15HY 150DB,  #6 5 HY 200DB

 

1?  Can I switch to Schedule F and retain the previous deprecation schedule?

2?  Are legal consequence if I continue to file the Cx Return on Schedule C?

 

 

 

0 1 1957
1 Replies
Expert Alumni
Mar 29, 2024 7:27:04 AM

No, there are no legal consequences if you continue to use a Schedule C to report sales from your floral products.  Schedule F is especially designed to report income and expenses generally specific to farming but since you retail your floral products, Schedule C will work just fine.

 

It may be beneficial to switch to Schedule F because of some farm credits may be beneficial to you that are not available on a Schedule C. You may continue the depreciation schedule as is and the prior depreciation can be inputted from the depreciation Schedule form your 2022 return.

 

[Edited 04/01/24|7:15 am PST]

 

@atataylor