Can I deduct a farm loss on a 1040?

[edwardmccain]

We have a small hay farm that sometimes yields a small profit. This year we have a small loss. Can I deduct that on the 1040?

[TomK · Accepted solution]

Yes.

To enter/edit/add farm income and expenses:

1. Open your return (or continue if open).
2. Click on “Take me to my return” if applicable.
3. Type “farm income and expenses” in Search box (upper right-hand corner of the screen)
4. Click on “Jump to farm income and expenses” link.
5. Proceed through screen prompts.