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wadomoen
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Does farm income used to pay an operating loan have to be claimed

Does farm income used to pay operating expense have to be claimed as income

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Does farm income used to pay an operating loan have to be claimed

Yes, all farm income must be reported. All expenses must be reported and all depreciation must be reported. The farm expense items you purchased with the operating loan are reported in TurboTax as expenses. The interest you paid on the operating loan is a farm expense. The portion of the payment that applies to the balance of the loan, is not reported as an expense.

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Does farm income used to pay an operating loan have to be claimed

Yes, all farm income must be reported. All expenses must be reported and all depreciation must be reported. The farm expense items you purchased with the operating loan are reported in TurboTax as expenses. The interest you paid on the operating loan is a farm expense. The portion of the payment that applies to the balance of the loan, is not reported as an expense.

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