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Instructions for Schedule F (Form 1040)
taxmap/instr/i1040sf-006.htm#TXMP6fd62f89

Part II. Farm Expenses(p4)

rule
Do not deduct the following.
If you were repaid for any part of an expense, you must subtract the amount you were repaid from the deduction.
taxmap/instr/i1040sf-006.htm#TXMP4a430cbe
Capitalizing costs of property.(p4)
rule
If you produced real or tangible personal property or acquired property for resale, certain expenses must be included in inventory costs or capitalized. These expenses include the direct costs of the property and the share of any indirect costs allocable to that property. However, these rules generally do not apply to expenses of:
  1. Producing any plant that has a preproductive period of 2 years or less,
  2. Raising animals, or
  3. Replanting certain crops if they were lost or damaged by reason of freezing temperatures, disease, drought, pests, or casualty.
 
caution
Exceptions (1) and (2) do not apply to tax shelters, farming syndicates, partnerships, or corporations required to use the accrual method of accounting under section 447 or 448(a)(3).
 
If you capitalize your expenses, do not reduce your deductions on lines 12 through 34e by the capitalized expenses. Instead, enter the total amount capitalized in parentheses on line 34f (to indicate a negative amount) and enter 263A in the space to the left of the total. See Preproductive period expenses on page F-7 for details.
But you may be able to currently deduct rather than capitalize the expenses of producing a plant with a preproductive period of more than 2 years. See Election to deduct certain preproductive period expenses next.
taxmap/instr/i1040sf-006.htm#TXMP37555027
Election to deduct certain preproductive period expenses.(p4)
rule
If the preproductive period of any plant you produce is more than 2 years, you can elect to currently deduct the expenses rather than capitalize them. But you cannot make this election for the costs of planting or growing citrus or almond groves incurred before the end of the fourth tax year beginning with the tax year you planted them in their permanent grove. You are treated as having made the election by deducting the preproductive period expenses in the first tax year for which you can make this election and by applying the special rules, discussed later on this page. 
 
caution
In the case of a partnership or S corporation, the election must be made by the partner, shareholder, or member. This election cannot be made by tax shelters, farming syndicates, partnerships, or corporations required to use the accrual method of accounting under section 447 or 448(a)(3).
 
Unless you obtain IRS consent, you must make this election for the first tax year in which you engage in a farming business involving the production of property subject to the capitalization rules. You cannot revoke this election without IRS consent.
taxmap/instr/i1040sf-006.htm#TXMP028f04d3
Special rules.(p4)
If you make the election to deduct preproductive expenses for plants:
For details, see Uniform Capitalization Rules in chapter 6 of Pub. 225.
taxmap/instr/i1040sf-006.htm#TXMP623d1d96
Prepaid farm supplies.(p4)
rule
In most cases, if you use the cash method of accounting and your prepaid farm supplies are more than 50% of your other deductible farm expenses, your deduction for those supplies may be limited. Prepaid farm supplies include expenses for feed, seed, fertilizer, and similar farm supplies not used or consumed during the year. They also include the cost of poultry that would be allowable as a deduction in a later tax year if you were to (a) capitalize the cost of poultry bought for use in your farming business and deduct it ratably over the lesser of 12 months or the useful life of the poultry, and (b) deduct the cost of poultry bought for resale in the year you sell or otherwise dispose of it.
If the limit applies, you can deduct prepaid farm supplies that do not exceed 50% of your other deductible farm expenses in the year of payment. You can deduct the excess only in the year you use or consume the supplies (other than poultry, which is deductible as explained above). For details and exceptions to these rules, see chapter 4 of Pub. 225.
Whether or not this 50% limit applies, your expenses for livestock feed paid during the year but consumed in the later year may be subject to the rules explained later in the line 18 instructions.
taxmap/instr/i1040sf-006.htm#TXMP20808951

Line 12(p5)

rule
You can deduct the actual expenses of operating your car or truck or take the standard mileage rate. You must use actual expenses if you used your vehicle for hire or you used five or more vehicles simultaneously in your farming business (such as in fleet operations). You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle.
You can take the standard mileage rate for 2010 only if you:
If you take the standard mileage rate:
Do not deduct depreciation, rent or lease payments, or your actual operating expenses.
If you deduct actual expenses:
If you claim any car or truck expenses (actual or the standard mileage rate), you must provide the information requested on Form 4562, Part V. Be sure to attach Form 4562 to your return.
For details, see chapter 4 of Pub. 463.
taxmap/instr/i1040sf-006.htm#TXMP1077fbfe

Line 14(p5)

rule
Deductible conservation expenses generally are those that are paid to conserve soil and water for land used in farming, to prevent erosion of land used for farming, or for endangered species recovery. These expenses include (but are not limited to) costs for the following.
These expenses can be deducted only if they are consistent with a conservation plan approved by the Natural Resources Conservation Service of the Department of Agriculture or a recovery plan approved pursuant to the Endangered Species Act of 1973, for the area in which your land is located. If no plan exists, the expenses must be consistent with a plan of a comparable state agency. You cannot deduct the expenses if they were paid or incurred for land used in farming in a foreign country.
Do not deduct expenses you paid or incurred to drain or fill wetlands, or to prepare land for center pivot irrigation systems.
Your deduction cannot exceed 25% of your gross income from farming (excluding certain gains from selling assets such as farm machinery and land). If your conservation expenses are more than the limit, the excess can be carried forward and deducted in later tax years. However, the amount deductible for any one year cannot exceed the 25% gross income limit for that year.
For details, see chapter 5 of Pub. 225.
taxmap/instr/i1040sf-006.htm#TXMP19a0d5d8

Line 15(p5)

rule
Enter amounts paid for custom hire or machine work (the machine operator furnished the equipment).
Do not include amounts paid for rental or lease of equipment you operated yourself. Instead, report those amounts on line 26a.
taxmap/instr/i1040sf-006.htm#TXMP36a964b8

Line 16(p5)

rule
You can deduct depreciation of buildings, improvements, cars and trucks, machinery, and other farm equipment of a permanent nature.
Do not deduct depreciation on your home, furniture or other personal items, land, livestock you bought or raised for resale, or other property in your inventory.
You can also elect under section 179 to expense a portion of the cost of certain property you bought in 2010 for use in your farming business. The section 179 election is made on Form 4562.
For information about depreciation and the section 179 deduction, see Pub. 946 and chapter 7 of Pub. 225. For details on the special depreciation allowance, see chapter 3 of Pub. 946.
See the Instructions for Form 4562 for information on when you must complete and attach Form 4562.
taxmap/instr/i1040sf-006.htm#TXMP1fe6f0fa

Line 17(p5)

rule
Deduct contributions to employee benefit programs that are not an incidental part of a pension or profit-sharing plan included on line 25. Examples are accident and health plans, group-term life insurance, and dependent care assistance programs. If you made contributions on your behalf as a self-employed person to a dependent care assistance program, complete Form 2441, Parts I and III, to figure your deductible contributions to that program.
Contributions you made on your behalf as a self-employed person to an accident and health plan or for group-term life insurance are not deductible on Schedule F. However, you may be able to deduct on Form 1040, line 29 (or on Form 1040NR, line 29), the amount you paid for health insurance on behalf of yourself, your spouse, and dependents even if you do not itemize your deductions. See the instructions for Form 1040, line 29, or Form 1040NR, line 29, for details.
You must reduce your line 17 deduction by the amount of any credit for small employer health insurance premiums determined on Form 8941. See Form 8941 and its instructions to determine which expenses are eligible for the credit.
taxmap/instr/i1040sf-006.htm#TXMP5ae4430d

Line 18(p5)

rule
If you use the cash method, you cannot deduct when paid the cost of feed your livestock will consume in a later year unless all of the following apply.
If all of the above apply, you can deduct the prepaid feed when paid, subject to the overall limit for Prepaid farm supplies explained on page F-4. If all of the above do not apply, you can deduct the prepaid feed only in the year it is consumed.
taxmap/instr/i1040sf-006.htm#TXMP449c4e53

Line 20(p5)

rule
Do not include the cost of transportation incurred in purchasing livestock held for resale as freight paid. Instead, add these costs to the cost of the livestock and deduct them when the livestock is sold.
taxmap/instr/i1040sf-006.htm#TXMP6fdfddd6

Line 22(p5)

rule
Deduct on this line premiums paid for farm business insurance. Deduct on line 17 amounts paid for employee accident and health insurance. Amounts credited to a reserve for self-insurance or premiums paid for a policy that pays for your lost earnings due to sickness or disability are not deductible. For details, see chapter 6 of Pub. 535.
taxmap/instr/i1040sf-006.htm#TXMP07a9e88e

Lines 23a and 23b(p5)

rule
taxmap/instr/i1040sf-006.htm#TXMP28fdf6f1
Interest allocation rules.(p5)
rule
The tax treatment of interest expense differs depending on its type. For example, home mortgage interest and investment interest are treated differently. Interest allocation rules require you to allocate (classify) your interest expense so it is deducted (or capitalized) on the correct line of your return and receives the right tax treatment. These rules could affect how much interest you are allowed to deduct on Schedule F.
In most cases, you allocate interest expense by tracing how the proceeds of the loan are used. See chapter 4 of Pub. 535 for details.
If you paid interest on a debt secured by your main home and any of the proceeds from that debt were used in your farming business, see chapter 4 of Pub. 535 to figure the amount to include on lines 23a and 23b.
taxmap/instr/i1040sf-006.htm#TXMP12549261
How to report.(p6)
rule
If you have a mortgage on real property used in your farming business (other than your main home), enter on line 23a the interest you paid for 2010 to banks or other financial institutions for which you received a Form 1098 (or similar statement). If you did not receive a Form 1098, enter the interest on line 23b.
If you paid more mortgage interest than is shown on Form 1098, see chapter 4 of Pub. 535 to find out if you can deduct the additional interest. If you can, include the amount on line 23a. Attach a statement to your return explaining the difference and enter See attached in the margin next to line 23a.
If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on the mortgage and the other person received the Form 1098, include your share of the interest on line 23b. Attach a statement to your return showing the name and address of the person who received the Form 1098. In the margin next to line 23b, enter See attached.
Do not deduct interest you prepaid in 2010 for later years; include only the part that applies to 2010.
taxmap/instr/i1040sf-006.htm#TXMP5afbbd50

Line 24(p6)

rule
Enter the amounts you paid for farm labor. Do not include amounts paid to yourself. Reduce your deduction by the amounts claimed on:
Include the cost of boarding farm labor but not the value of any products they used from the farm. Include only what you paid household help to care for farm laborers.
caution
If you provided taxable fringe benefits to your employees, such as personal use of a car, do not include in farm labor the amounts you depreciated or deducted elsewhere.
taxmap/instr/i1040sf-006.htm#TXMP190b6e43

Line 25(p6)

rule
Enter your deduction for contributions to employee pension, profit-sharing, or annuity plans. If the plan included you as a self-employed person, enter contributions made as an employer on your behalf on Form 1040, line 28 (or on Form 1040NR, line 28), not on Schedule F.
In most cases, you must file the applicable form listed next if you maintain a pension, profit-sharing, or other funded-deferred compensation plan. The filing requirement is not affected by whether or not the plan qualified under the Internal Revenue Code, or whether or not you claim a deduction for the current tax year. There is a penalty for failure to timely file these forms.
taxmap/instr/i1040sf-006.htm#TXMP025275ff
Form 5500-EZ.(p6)
rule
File this form if you have a one-participant retirement plan that meets certain requirements. A one-participant plan is a plan that covers only you (or you and your spouse).
taxmap/instr/i1040sf-006.htm#TXMP08669358
Form 5500-SF.(p6)
rule
File this form if you have a small plan (fewer than 100 participants in most cases) that meets certain requirements.
taxmap/instr/i1040sf-006.htm#TXMP4179badf
Form 5500.(p6)
rule
File this form for a plan that does not meet the requirements for filing Form 5500-EZ or Form 5500-SF.
For details, see Pub. 560.
taxmap/instr/i1040sf-006.htm#TXMP6079128a

Lines 26a and 26b(p6)

rule
If you rented or leased vehicles, machinery, or equipment, enter on line 26a the business portion of your rental cost. But if you leased a vehicle for a term of 30 days or more, you may have to reduce your deduction by an inclusion amount. See Leasing a Car in chapter 4 of Pub. 463 to figure this amount.
Enter on line 26b amounts paid to rent or lease other property such as pasture or farmland.
taxmap/instr/i1040sf-006.htm#TXMP6e523cc7

Line 27(p6)

rule
Enter amounts you paid for incidental repairs and maintenance of farm buildings, machinery, and equipment that do not add to the property's value or appreciably prolong its life.
Do not deduct repairs or maintenance on your home.
taxmap/instr/i1040sf-006.htm#TXMP50617a09

Line 31(p6)

rule
You can deduct the following taxes on this line.
Do not deduct the following taxes on this line.
taxmap/instr/i1040sf-006.htm#TXMP5cf49578

Line 32(p6)

rule
Enter amounts you paid for gas, electricity, water, and other utilities for business use on the farm. Do not include personal utilities. You cannot deduct the base rate (including taxes) of the first telephone line into your residence, even if you use it for your farming business. But you can deduct expenses you paid for your farming business that are more than the cost of the base rate for the first phone line. For example, if you had a second phone line, you can deduct the business percentage of the charges for that line, including the base rate charges.
taxmap/instr/i1040sf-006.htm#TXMP467f791a

Lines 34a Through 34f(p6)

rule
Include all ordinary and necessary farm expenses not deducted elsewhere on Schedule F, such as advertising, office supplies, etc. Do not include fines or penalties paid to a government for violating any law.
taxmap/instr/i1040sf-006.htm#TXMP09bee2f4
At-risk loss deduction.(p6)
rule
Any loss from this activity that was not allowed as a deduction last year because of the at-risk rules is treated as a deduction allocable to this activity in 2010. However, for the loss to be deductible, the amount at risk must be increased.
taxmap/instr/i1040sf-006.htm#TXMP471d532b
Bad debts.(p6)
rule
See chapter 10 of Pub. 535.
taxmap/instr/i1040sf-006.htm#TXMP1578b668
Business start-up costs.(p6)
rule
If your farming business began in 2010, you can elect to deduct up to $5,000 of certain business start-up costs paid or incurred after October 22, 2004, in tax years before 2010, and up to $10,000 of certain business start-up costs paid or incurred in tax years beginning in 2010. The $5,000 limit is reduced (but not below zero) by the amount by which your start-up costs exceed $50,000, and the $10,000 limit is reduced (but not below zero) by the amount by which your start-up costs exceed $60,000. Your remaining start-up costs can be amortized over a 180-month period, beginning with the month the farming business began. For details, see chapters 4 and 7 of Pub. 225. For amortization that begins in 2010, you must complete and attach Form 4562.
taxmap/instr/i1040sf-006.htm#TXMP4811424c
Business use of your home.(p6)
rule
You may be able to deduct certain expenses for business use of your home, subject to limitations. Use the worksheet in Pub. 587 to figure your allowable deduction. Do not use Form 8829.
taxmap/instr/i1040sf-006.htm#TXMP73fd306c
Forestation and reforestation costs.(p6)
rule
Reforestation costs are generally capital expenditures. However, for each qualified timber property, you can elect to expense up to $10,000 ($5,000 if married filing separately) of qualifying reforestation costs paid or incurred in 2010.
You can elect to amortize the remaining costs over 84 months. For amortization that begins in 2010, you must complete and attach Form 4562.
The amortization election does not apply to trusts, and the expense election does not apply to estates and trusts. For details on reforestation expenses, see chapters 4 and 7 of Pub. 225.
taxmap/instr/i1040sf-006.htm#TXMP0aa9e8da
Legal and professional fees.(p7)
rule
You can include on this line fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to your farming business. Include fees for tax advice and for the preparation of tax forms related to your farming business. Also include expenses incurred in resolving asserted tax deficiencies related to your farming business.
taxmap/instr/i1040sf-006.htm#TXMP6c97eeb3
Tools.(p7)
rule
You can deduct the amount you paid for tools that have a short life or cost a small amount, such as shovels and rakes.
taxmap/instr/i1040sf-006.htm#TXMP55f9f296
Travel, meals, and entertainment.(p7)
rule
In most cases, you can deduct expenses for farm business travel and 50% of your business meals and entertainment. But there are exceptions and limitations. See the instructions for Schedule C, lines 24a and 24b.
taxmap/instr/i1040sf-006.htm#TXMP303989ae
Preproductive period expenses.(p7)
rule
If you had preproductive period expenses in 2010 that you are capitalizing, enter the total of these expenses in parentheses on line 34f (to indicate a negative amount) and enter 263A in the space to the left of the total.
For details, see page F-4, Capitalizing costs of property, and Uniform Capitalization Rules in chapter 6 of Pub. 225.
taxmap/instr/i1040sf-006.htm#TXMP06c03ea8

Line 35(p7)

rule
If line 34f is a negative amount, subtract it from the total of lines 12 through 34e. Enter the result on line 35.
taxmap/instr/i1040sf-006.htm#TXMP54d7c5f1

Line 36(p7)

rule
If you have a loss, the amount of loss you can deduct this year may be limited. If you checked the No box on line E, also see the Instructions for Form 8582.
taxmap/instr/i1040sf-006.htm#TXMP6b79c562
Individuals.(p7)
rule
Enter your net profit or deductible loss here and on Form 1040, line 18, and Schedule SE, line 1a. Complete line 37 before entering the loss on line 36.
taxmap/instr/i1040sf-006.htm#TXMP72883548
Nonresident aliens.(p7)
rule
Enter the net profit or deductible loss here and on Form 1040NR, line 19. You should also enter this amount on Schedule SE, line 1a if you are covered under the U.S. social security system due to an international social security agreement currently in effect. See the Schedule SE instructions for information on international social security agreements.
taxmap/instr/i1040sf-006.htm#TXMP3a3458b0
Partnerships.(p7)
rule
Enter the net profit or deductible loss here and on Form 1065, line 5 (or Form 1065-B, line 7). Because the excess farm loss rules are applied at the partner level, the partnership will notify each partner on the Schedule K-1 if the partnership received one of the subsidies discussed later. Each partner should complete one of the excess farm loss worksheets to determine if there is an excess farm loss.
taxmap/instr/i1040sf-006.htm#TXMP07426028
Trusts and estates.(p7)
rule
Enter the net profit or deductible loss here and on Form 1041, line 6. If you have a loss, complete line 37 to determine the amount of your loss at risk before entering the loss on line 36.
taxmap/instr/i1040sf-006.htm#TXMP3bd76e70
Community income.(p7)
rule
If you and your spouse had community income and are filing separate returns, see page SE-2 of the instructions for Schedule SE before figuring self-employment tax.
taxmap/instr/i1040sf-006.htm#TXMP05faf8f5
Earned income credit.(p7)
rule
If you have a net profit on line 36, this amount is earned income and may qualify you for the earned income credit if you meet certain conditions. See the instructions for Form 1040, lines 64a and 64b, for details.
taxmap/instr/i1040sf-006.htm#TXMP2a090d06
Conservation Reserve Program (CRP) payments.(p7)
rule
If you received social security retirement or disability benefits in addition to CRP payments, the CRP payments are not subject to self-employment tax. You will deduct these payments from your net farm profit or loss on line 1b of Schedule SE. Do not make any adjustment on Schedule F.
taxmap/instr/i1040sf-006.htm#TXMP1fd0be57

Line 37(p7)

rule
taxmap/instr/i1040sf-006.htm#TXMP248679c9
Excess farm loss rules.(p7)
rule
If you received certain subsidies in 2010, your farm loss may be reduced or eliminated. Check box 37b if you received one of the subsidies below.
Your excess farm loss for a year is the amount by which your total deductions from your farming businesses exceed your total gross income or gain from your farming businesses, plus a threshold amount. The threshold amount is the greater of $300,000 ($150,000 if your filing status is married filing separately) or your total net profit or loss from farming businesses for the last five years (2005-2009), including for each of those years any net gain from the sale of property used in your farming businesses. To determine if you have an excess farm loss, use one of the worksheets beginning on page F-9.
taxmap/instr/i1040sf-006.htm#TXMP32976e46
Farming businesses defined.(p7)
For purposes of calculating your excess farm loss for the year, farming business has the meaning used in section 263A(e)(4) (generally the trade or business of farming, including operating a nursery or sod farm or raising or harvesting of trees bearing fruit, nuts, or other crops, or ornamental trees).
Farming business also includes the trade or business of processing a farm commodity even if it is not incidental to your farm. Additionally, farming business includes participating in a cooperative that processes a farm commodity. As a result, any activity reported on Schedule C that involves processing a farm commodity must be included when determining your excess farm loss, and any losses from that Schedule C activity may be limited by the excess farm loss rules. Farming business also includes any interest in a partnership or S corporation involved in a farming business.
The worksheets beginning on page F-9 may be used to determine if you have an excess farm loss. These worksheets are provided for your recordkeeping purposes only, and which worksheet you should use will depend on the nature and extent of your farming businesses.
Any excess farm loss not allowed in 2010 may be carried forward and deducted on Schedule F in the first year in which you do not have an excess farm loss. In determining your excess farm loss for a year in which you received a subsidy described above, do not take into account any deduction for losses from fire, storm, or other casualty, or from disease or drought involving any farming business. Also, you must determine your excess farm loss before calculating any limits due to passive activity on Form 8582.
taxmap/instr/i1040sf-006.htm#TXMP534d4ce8
At-risk rules.(p7)
rule
In most cases, if you have a loss from a farming activity and amounts invested in the activity for which you are not at risk, you must complete Form 6198 to figure your allowable loss. The at-risk rules generally limit the amount of loss (including loss on the disposition of assets) you can claim to the amount you could actually lose in the activity.
Check box 37b if you have amounts invested in this activity for which you are not at risk, such as the following.
taxmap/instr/i1040sf-006.htm#TXMP32c9bb9d
Figuring your deductible loss.(p7)
rule
Before determining your deductible loss, you must check box 37a or 37b to determine if your loss on line 36 is further limited by the excess farm loss rules or the at-risk rules. Follow the instructions below that apply to your box 37 activity.
taxmap/instr/i1040sf-006.htm#TXMP17f3c3ad
Box 37a because all your investment is at risk and you did not receive a subsidy.(p7)
If all your investment amounts are at risk in this activity and you did not receive a subsidy, check box 37a. If you checked the Yes box on line E, enter your loss on line 36 and on Form 1040, line 18, and Schedule SE, line 1a. Nonresident aliens – enter the deductible loss on Form 1040NR, line 19 (and Schedule SE, line 1a if applicable – see Nonresident aliens under the line 36 instructions, earlier). Estates and trusts – enter the deductible loss on Form 1041, line 6.
But if you checked the No box on line E, you may need to complete Form 8582 to figure your allowable loss to enter on line 36. See the Instructions for Form 8582.
taxmap/instr/i1040sf-006.htm#TXMP1ec234b8
Box 37b because all your investment is at risk and you received a subsidy.(p8)
Use one of the worksheets beginning on page F-9 to determine if you have an excess farm loss that reduces the amount of loss you can deduct this year. If you have more than one farming business with an overall loss this year, allocate the excess farm loss amount on a pro rata basis among those farming businesses.
If you checked the Yes box on line E, enter that amount on Form 1040, line 18, and Schedule SE, line 1a. Nonresident aliens – enter the deductible loss on Form 1040NR, line 19 (and Schedule SE, line 1a if applicable – see Nonresident aliens under the line 36 instructions, earlier). Estates and trusts – enter the deductible loss on Form 1041, line 6. Partnerships – enter this amount on Form 1065, line 5 (or Form 1065-B, line 7).
But if you checked the No box on line E, see the Instructions for Form 8582 to determine your further loss limitation. If your at-risk amount is zero or less, enter -0- on line 36. Be sure to attach Form 6198 to your return.
taxmap/instr/i1040sf-006.htm#TXMP5c6a5503
Box 37b because some investment is not at risk and you received a subsidy.(p8)
Use one of the worksheets beginning on the next page to determine if you have an excess farm loss that reduces the amount of loss you can deduct this year. If you have more than one farming business with an overall loss this year, allocate the excess farm loss amount on a pro rata basis among those farming businesses.
If you checked the Yes box on line E, first complete Form 6198 to determine the amount of your deductible loss and enter that amount on Form 1040, line 18, and Schedule SE, line 1a. Nonresident aliens – enter the deductible loss on Form 1040NR, line 19 (and Schedule SE, line 1a if applicable – see Nonresident aliens under the line 36 instructions, earlier). Estates and trusts – enter the deductible loss on Form 1041, line 6. Partnerships – do not complete Form 6198; enter your profit or loss on line 36 and on Form 1065, line 5 (or Form 1065-B, line 7).
But if you checked the No box on line E, see the Instructions for Form 8582 to determine your further loss limitation. If your at-risk amount is zero or less, enter -0- on line 36. Be sure to attach Form 6198 to your return.
taxmap/instr/i1040sf-006.htm#TXMP1434b367
Box 37b because some investment is at risk and you did not receive a subsidy.(p8)
If you checked box 37b because some investment amount in this activity is not at risk and you did not receive a subsidy, first complete Form 6198 to determine the amount of your deductible loss. If you checked the Yes box on line E, enter that amount on line 36 and on Form 1040, line 18, and Schedule SE, line 1a. Nonresident aliens – enter the deductible loss on Form 1040NR, line 19 (and Schedule SE, line 1a if applicable – see Nonresident aliens under the line 36 instructions, earlier). Estates and trusts – enter the deductible loss on Form 1041, line 6. Partnerships – do not complete Form 6198; enter your profit or loss on line 36 and on Form 1065, line 5 (or Form 1065-B, line 7).
But if you checked the No box on line E, see the Instructions for Form 8582 to determine your further loss limitation. If your at-risk amount is zero or less, enter -0- on line 36. Be sure to attach Form 6198 to your return.
caution
If you checked box 37b because some investment is not at risk and you do not attach Form 6198, the processing of your return may be delayed.
Any loss from this activity not allowed for 2010 only because of the at-risk rules is treated as a deduction allocable to the activity in 2011.
For details, see Pub. 925 and the  
Instructions for Form 6198.
taxmap/instr/i1040sf-006.htm#TXMP3015bdd3
Excess farm loss worksheets.(p8)
You may complete one of these worksheets to determine if you have an excess farm loss in 2010. Do not attach these worksheets to your return; keep them for your records. You will need them next year when any excess farm loss may be deducted, as discussed above. Which worksheet you should use depends on your farming business, or businesses, as explained in Farming businesses defined, earlier.
If you file multiple copies of Schedule F, Schedule C, or Schedule E as part of your farming businesses, you must combine the income, deductions, and net gain/loss for purposes of determining whether you have an excess farm loss on the worksheets. If you sold any property used in your farming businesses, you must include any gain or loss on the sale of that property (reported on Form 4797, Sales of Business property, or Schedule D (Form 1040), Capital Gains and Losses). Be sure to include the gain or loss attributable to property used in your farming business or businesses, as defined earlier in Farming businesses defined. Do not include gain or loss attributable to property used in nonfarming businesses or nonbusiness property.