Hello,
I am a self-employed farm owner. I have a few questions on categorizing farm worker expenses such as daily living supplies, housing expenses, PPE, legal support, travel, etc.
How do you categorize all of the above within the schedule F?
The farm is a partnership (2 self-employed partners. We file a 1065 + Schedule F, and each file a K-1 with our individual tax returns)
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You can deduct the cost of boarding farm workers, and that would be categorized as Labor Hired (line 22) on schedule F. You would enter that as Wages in the Common farming expenses section under Farm Expenses in TurboTax. Property, Plant and Equipment would be entered as Farm assets and TurboTax will determine the allowable depreciation deduction for them. Legal fees would be deductible as Other expenses on line 32 of Schedule F, as would travel expenses. They are entered as Other Miscellaneous expenses under Farm Expenses in the program.
Please clarify if you are a self-employed farmer or an employee of someone who operates a farm.
Clarified. The farm is a partnership (2 self-employed partners)
You can deduct the cost of boarding farm workers, and that would be categorized as Labor Hired (line 22) on schedule F. You would enter that as Wages in the Common farming expenses section under Farm Expenses in TurboTax. Property, Plant and Equipment would be entered as Farm assets and TurboTax will determine the allowable depreciation deduction for them. Legal fees would be deductible as Other expenses on line 32 of Schedule F, as would travel expenses. They are entered as Other Miscellaneous expenses under Farm Expenses in the program.
Excellent advice, thank you.
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