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taxmap/instr/i1040sf-000.htm#TXMP73a6c6c6 Profit or Loss From Farming

2006

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.

taxmap/instr/i1040sf-000.htm#TXMP15d262af Additional information.

Pub. 225 has samples of filled-in forms and schedules, and lists important dates that apply to farmers.

taxmap/instr/i1040sf-000.htm#TXMP2f584229 What's New

taxmap/instr/i1040sf-000.htm#TXMP5e5cb777 Deduction for qualified clean-up costs.

You may be able to deduct 50% of amounts paid or incurred for removal of debris or demolition of structures located in the Gulf Opportunity (GO) Zone. See GO Zone clean-up costs on page F-6.

taxmap/instr/i1040sf-000.htm#TXMP6b796404 Increased expense limit for qualified timber property.

For qualified timber property you own in the GO Zone, the Rita GO Zone, or the Wilma GO Zone, the limit on expensing reforestation expenditures is increased by up to $10,000. See Forestation and reforestation costs on page F-6.

taxmap/instr/i1040sf-000.htm#TXMP4393a380 Increased section 179 limits for GO Zone property.

You may be able to take an increased section 179 deduction for qualified GO Zone property you placed in service in 2006. For information, see Pub. 225.

taxmap/instr/i1040sf-000.htm#TXMP37a71e40 Additional depreciation allowed for qualified property.

If, during 2006, you placed in service qualified property in the GO Zone, you may be able to claim additional depreciation deductions. See Pub. 225 for more information.

taxmap/instr/i1040sf-000.htm#TXMP477943ad Employee retention credit has expired.

This credit was available for qualified wages paid before January 1, 2006.

taxmap/instr/i1040sf-000.htm#TXMP315e81a4 Clean-fuel vehicle and refueling property deductions have expired.

These deductions were available for property placed in service before January 1, 2006.

taxmap/instr/i1040sf-000.htm#TXMP09aa271b Indian employment credit has expired.

This credit was available for qualified wages paid before January 1, 2006.

At the time these instructions went to print, Congress was considering legislation that would extend the Indian employment credit that expired at the end of 2005. To find out if this legislation was enacted, and for more details, go to www.irs.gov, click on More Forms and Publications, and then on What's Hot in forms and publications, or see Pub. 553.

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