How to I include owner draws from farm income? Is this a pre tax deduction?
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.
How to I include owner draws from farm income? Is this a pre tax deduction?
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.
Sign In
