# Schedule F ?



## Michael Bush (Aug 2, 2002)

I've heard of people who do either. I do a Schedule F. Bees are livestock. You buy them. You sell them. You feed them. You buy supplies for them.


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## DrewApiaries (Feb 9, 2015)

We agree with Michael. Schedule F


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## Mbeck (Apr 27, 2011)

Michael Bush said:


> I've heard of people who do either. I do a Schedule F. Bees are livestock. You buy them. You sell them. You feed them. You buy supplies for them.


...and they die.


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## Michael Palmer (Dec 29, 2006)

I've filed a schedule F for decades. One advantage of being agriculture is you don't have to file quarterly...as long as you file by March 1. To do so, 51% of your income has to be from agriculture.


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## Michael Bush (Aug 2, 2002)

>...and they die.

Sometimes.


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## wildbranch2007 (Dec 3, 2008)

Michael Palmer said:


> I've filed a schedule F for decades. One advantage of being agriculture is you don't have to file quarterly...as long as you file by March 1. To do so, 51% of your income has to be from agriculture.


I've always used schedule c as that's what's my accountant said I had to use years ago, I called the IRS twice once I retired and asked if it was ok to use a schedule f, both asked if I had a farm, which I didn't, said I couldn't file F, I don't think they are correct. So last year when ELAP came along, one of the requirements to do the paper work was a farm #, so they gave me one, now I have a farm and am going to use schedule f.


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## Michael Bush (Aug 2, 2002)

I'm not sure of the IRS definition of a farm. For the most part Nebraska defines a farm as being a minimum of 20 acres being used for agriculture. But other entities define a farm in different ways. One is that you produce at least $1,000 worth of farm product. That one isn't too hard to meet as a beekeeper. They don't even say how much you spent producing it.  I've been filing Schedule F's since I started raising horses and expanded with the bees.


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## jim lyon (Feb 19, 2006)

wildbranch2007 said:


> I've always used schedule c as that's what's my accountant said I had to use years ago, I called the IRS twice once I retired and asked if it was ok to use a schedule f, both asked if I had a farm, which I didn't, said I couldn't file F, I don't think they are correct. So last year when ELAP came along, one of the requirements to do the paper work was a farm #, so they gave me one, now I have a farm and am going to use schedule f.


When the IRS asked if you had a farm you probably should have replied "yes, I have a honey farm". I file a schedule F for the beekeeping operation and a seperate one for grain.


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## wildbranch2007 (Dec 3, 2008)

Michael Bush said:


> I'm not sure of the IRS definition of a farm.


actually that reminded me why my accountant wouldn't let me use F. so better have 2/3 of your gross be from farming. but it doesn't actually say you can't use schedule f.

http://www.irs.gov/publications/p225/ch15.html


Qualified Farmer

An individual is a qualified farmer for 2014 if at least two-thirds of his or her gross income from all sources for 2013 or 2014 was from farming. See Gross Income , next, for information on how to figure your gross income from all sources and see Gross Income From Farming , later, for information on how to figure your gross income from farming. See also Percentage From Farming , later, for information on how to determine the percentage of your gross income from farming.


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## Specialkayme (Sep 4, 2005)

I don't think you have to be a Qualified Farmer to file a Schedule F. You have to be a Qualified Farmer to exempt yourself from paying estimated taxes, but not from reporting farm income.

http://www.irs.gov/pub/irs-pdf/p225.pdf

Nowhere does it say you have to be a Qualified Farmer to file a Schedule F.

It does say:



> Income from farming reported on Schedule F includes amounts you receive from cultivating, operating, or managing a farm for gain or profit, either as owner or tenant. This includes income from operating a stock, dairy, poultry, fish, fruit, or truck farm and income from operating a plantation, ranch, range, orchard, or grove. It also includes income from the sale of crop shares if you materially participate in producing the crop. See Rents (Including Crop Shares), later.
> 
> Income received from operating a nursery, which specializes in growing ornamental plants, is considered to be income from farming. Income reported on Schedule F does not include gains or losses from sales or other dispositions of the following farm assets.
> 
> ...


So if it's income from farming, it should go on Schedule F. The IRS won't really care if you put farming income on Schedule C though. But, if you have a gain or loss from the disposition of a non-farm asset, or from livestock held for breeding purposes, it doesn't belong on Schedule F.

Aside from being a "Qualified Farmer" or not, the only real difference between the two is Schedule C makes it easier to take the "home office" deduction off of income (although it's still possible with Schedule F), and Schedule C requires you to report if you started the business within the taxable year. Leads me to believe the IRS is more likely to recapitalize hobby losses from a Schedule C reporting than a Schedule F reporting, although both are really possible.

Of course, if it's hobby activities, you report the income on line 21 of the 1040, and itemize your deductions for expenses made in connection to it (but only to the extent you had income). Hobby activity losses can't offset ordinary income, while Schedules C and F can, as well as take above the line deductions. Both of which are HUGE in the tax world.


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