2007
Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040, 1040NR, 1041, 1065, or 1065-B.
Your farming activity may subject you to state and local taxes and other requirements such as business licenses and fees. Check with your state and local governments for more information.
Pub. 225 has samples of filled-in forms and schedules, and lists important dates that apply to farmers.
Beginning in 2007, you and your spouse, if you are filing married filing jointly, may be able to make a joint election to be taxed as a qualified joint venture instead of a partnership. See Exception—Qualified joint venture under Husband-wife farm on this page.
For property placed in service in 2007, the limit for the section 179 deduction to expense certain depreciable business property has been increased to $125,000. This limit will be reduced when the total cost of section 179 property placed in service during the tax year exceeds $500,000.
For 2007, both credits have been combined, modified, and extended for qualified wages paid to an employee.
The Indian employment credit has been extended for qualified wages paid to an employee through December 31, 2007.
This credit was available for lodging furnished to qualified employees between January 1, 2006 and July 1, 2006, and was claimed on Section B of Form 5884-A.
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