I own a farm and someone else farms it. The income and expenses are divided equally between the farmer and me. For 2021, I had expenses, but elected to postpone the sale of the 2021 crop at the elevator until the crop prices increase. I assume that I cannot take expenses without any income. How is something like this reported? Thank you.
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You are able to take expenses without any income.
Under the cash method, you have not received any income since the sale has not taken place in 2021. Under the cash method, there were expenses from 2021. You can deduct the expenses even without income. See the IRS, Publication 225, Farmer's Tax Guide for additional information about income and expenses.
You are able to take expenses without any income.
Under the cash method, you have not received any income since the sale has not taken place in 2021. Under the cash method, there were expenses from 2021. You can deduct the expenses even without income. See the IRS, Publication 225, Farmer's Tax Guide for additional information about income and expenses.
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