Do I have a farm business?

[t2_stevens]

I have written off farm income/ expenses the past 2 years. However, after reading more about the rules this year, I realize that we will claim a loss every year and probably have more of a hobby. Is it going to be a red flag to not claim the farm after having claimed it the past 2 years?

[Cattlerancher]

The IRS says you must have intent to profit with a reasonable potential to do so. If you have no profit for several years, it will be a red flag. If you have already filed schedule F for two years with intent to profit, but no longer believe you have that potential for profit, you should close out your farm business in TurboTax. To do that correctly, you would have to upgrade to Self Employed. In the Farm Income section report that you are closing your farm business this year and report how you are disposing of each depreciating farm asset.