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How to I include owner draws from farm income? Is this a pre tax deduction?
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June 6, 2019
7:36 AM
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State tax filing
You don't claim draw anywhere on your return. You pay your personal expenses just as you would from a salaried W-2 job, there would be no deduction there.
Think of it this way: If you have $40,000 in farm income and $15,000 expenses, your net farm income is $25,000. If you drew out $25,000 during the year to live on, then your net income isn't zero -- It's still $25,000.
June 6, 2019
7:36 AM