Would I be able to use Schedule C instead of Schedule F to list our new farm?

[JerseyJane]

We purchased a farm in NY in fall of 2016 which we did not actively farm until 2017. During 2017 my husband remained at our primary residence in NJ and continued to work full time in NJ while I worked on the farm, grew & sold produce at our fruit stand & local markets.  We also entered into an agreement to allow another farmer to hay the fields, keep the hay and pay us per acre in addition to renting a portion of our land for his cows and calves to graze. With all the purchases that we needed to make we were unable to make a profit. My husbands salary far exceeds farm generated income which I have found means that we were not considered farmers. Should we just use a schedule C instead of F to report farm (business) income/loss, or is there another path to take? We are currently DBA not an LLC. Should I be using a different version of TTAX?

[KittyM · Accepted solution]

If you operate a farm (your husband may not be a farmer, but it sounds like YOU are) then you should complete Schedule F for your farm operation, as it has expense categories for typical farm activities and costs which a Schedule C does not.

[JerseyJane]

I initially thought so too, however the NYFB (farm bureau) has a tax info page for members and under "To qualify as a farmer" it says "The IRS considers you a farmer if you receive at least two-thirds of your total gross income from farming in either 2016 or 2017." it goes on to say "If you are married filling jointly, you add your spouse's gross income to your own to make the two-thirds determination." - For us this will probably apply next year since my husband will be retiring and we'll move to the farm and sell our home in NJ. However, it makes our taxes very difficult during this transition year.

[KittyM]

That's not an issue for whether you file Schedule F, or not - that's more of a "Is it a hobby farm?" type of question, and is not the ONLY factor that is to be considered in determining if you are a farmer, or not.  Especially since it is your first year of operations.