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This article discusses the basic steps for completing SCH F.
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About SCH F
Taxpayers use SCH F to report farm income and expenses
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Follow the instructions below to correctly complete SCH F:
that are NOT from crop share income.
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Completing SCH F
Select Add Form.
Begin by typing SCH F, into the search bar at the bottom of the All Forms and Schedules Menu.
- Select
Locate and select Form SCH F. Double-click to add the form.
If a joint return, choose New Taxpayer's or New Spouse's Occurrence.
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Complete Lines A-G as needed (not all taxpayers will have the information in each section) shown.
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In A, enter the Principal crop or activity (this is what they farm).
In B, enter the AG Activity Code (utilize choices for a full list).
In C, indicate the taxpayers accounting method by placing an “X” in either 1 for cash method or 2 for accrual. It is very important you select the correct option here and enter income in the corresponding income section.
If you choose cash, you will need to enter all income in Part I.
If you choose accrual, you will need to enter all income in Part II.
If the taxpayer has an employer id, enter it in D. DO NOT use the employer id of someone they work for on 1099 forms.
Answer questions E-G according to information from the taxpayer.
Complete the QBID indicator. For more information regarding QBID reference What is the Qualified Business Income Deduction (QBID)?
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Link any 1099-NEC, 1099-MISC, or 1099-K forms.
Complete Part I Farm Income-Cash Method or Part III Farm Income-Accrual Method.
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You must use the section you marked in the accounting method earlier, or the SCH F will not calculate properly.
Complete Part II Farm expenses, as needed.
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You can view a taxpayer's net profit or (loss) on SCH F, Line 34. |
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Related Articles What is the Qualified Business Income Deduction (QBID)? What is the BOI Reporting Requirement? Due Diligence Documents |