Instructions for Schedule F (Form 1040), Profit or Loss From Farming

Instructions for Schedule F (Form 1040)

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If you use an accrual method, report farm income when you earn it, not when you receive it. In most cases, you must include animals and crops in your inventory if you use this method. See Pub. 225 for exceptions, inventory methods, how to change methods of accounting, and rules that require certain costs to be capitalized or included in inventory.

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If you were a debtor in a chapter 11 bankruptcy case during 2010, see the instructions for Form 1040 and page SE-2 of the instructions for Schedule SE (Form 1040).

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See the instructions for lines 5a through 7c on page F-3.

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See the instructions for line 10 that begin on page F-3.

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Excess Farm Loss Worksheet 1—Schedule F farming business only

CAUTION: In determining if you have an excess farm loss, do not take into account any deductions for losses arising by reason of fire, storm, or other casualty, or by reason of disease or drought, involving your farming business.

1.	Enter the amount from your 2010 Schedule(s) F, line 35. Is this amount less than 300,000 (150,000 if married filing separately)? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 2	1.
2.	Subtract 300,000 (150,000 if married filing separately) from line 1	2.
3.	Enter the amount from your 2010 Schedule(s) F, line 11	3.
4.	Is line 3 greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 5.
5.	Enter your net gain/loss from the sale of farming business property reported on Form 4797	5.
6.	Enter your net gain/loss from the sale of farming business property reported on Schedule D	6.
7.	Combine line 5 and line 6. If zero or less, enter -0-		7.
8.	Add line 3 and line 7. Is this greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 9		8.
9.	Enter the amount from your 2009 Schedule(s) F, line 36	9.
10.	Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D. If zero or less, enter -0-	10.
11.	Enter the amount from your 2008 Schedule(s) F, line 36	11.
12.	Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D. If zero or less, enter -0-	12.
13.	Enter the amount from your 2007 Schedule(s) F, line 36	13.
14.	Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D. If zero or less, enter -0-	14.
15.	Enter the amount from your 2006 Schedule(s) F, line 36	15.
16.	Enter your combined net gain/loss from the sale of farming business property reported on your 2006 Form 4797 and Schedule D. If zero or less, enter -0-	16.
17.	Enter the amount from your 2005 Schedule(s) F, line 36	17.
18.	Enter your combined net gain/loss from the sale of farming business property reported on your 2005 Form 4797 and Schedule D. If zero or less, enter -0-	18.
19.	Combine lines 9 through 18. If zero or less, enter -0-		19.
20.	Enter the greater of line 19 or 300,000 (150,000 if married filing separately)		20.
21.	Add line 8 and line 20		21.
22.	Excess farm loss. Subtract line 1 from line 21. If zero or less, 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		22.

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Excess Farm Loss Worksheet 2—Schedule F farming business(es) and Schedule C activity of processing a farm commodity

1.	Enter the amount from your 2010 Schedule(s) F, line 35	1.
2.	Enter the total amount from your 2010 Schedule(s) C, line 28 and line 30	2.
3.	Add lines 1 and 2. Is this amount less than 300,000 (150,000 if married filing separately)? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 4		3.
4.	Subtract 300,000 (150,000 if married filing separately) from line 3		4.
5.	Enter the amount from your 2010 Schedule(s) F, line 11	5.
6.	Enter the amount from your 2010 Schedule(s) C, line 7	6.
7.	Combine line 5 and line 6		7.
8.	Is line 7 greater than or equal to line 4? If yes, stop here. You do not have an excess farm in 2010. If no, continue to line 9.
9.	Enter your net gain/loss from the sale of farming business property reported on Form 4797	9.
10.	Enter your net gain/loss from the sale of farming business property reported on Schedule D	10.
11.	Combine line 9 and line 10. If zero or less, enter -0-		11.
12.	Add line 7 and line 11. Is this greater than or equal to line 4? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 13		12.
13.	Enter the amount from your 2009 Schedule(s) F, line 36	13.
14.	Enter the amount from your 2009 Schedule(s) C, line 31	14.
15.	Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D. If zero or less, enter -0-	15.
16.	Enter the amount from your 2008 Schedule(s) F, line 36	16.
17.	Enter the amount from your 2008 Schedule(s) C, line 31	17.
18.	Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D. If zero or less, enter -0-	18.
19.	Enter the amount from your 2007 Schedule(s) F, line 36	19.
20.	Enter the amount from your 2007 Schedule(s) C, line 31	20.
21.	Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D. If zero or less, enter -0-	21.
22.	Enter the amount from your 2006 Schedule(s) F, line 36	22.
23.	Enter the amount from your 2006 Schedule(s) C, line 31	23.
24.	Enter your combined net gain/loss from the sale of farming business property reported on your 2006 Form 4797 and Schedule D. If zero or less, enter -0-	24.
25.	Enter the amount from your 2005 Schedule(s) F, line 36	25.
26.	Enter the amount from your 2005 Schedule(s) C, line 31	26.
27.	Enter your combined net gain/loss from the sale of farming business property reported on your 2005 Form 4797 and Schedule D. If zero or less, enter -0-	27.
28.	Combine lines 13 through 27. If zero or less, enter -0-		28.
29.	Enter the greater of line 28 or 300,000 (150,000 if married filing separately)		29.
30.	Add line 12 and line 29		30.
31.	Excess farm loss. Subtract line 3 from line 30. If zero or less, 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		31.

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Excess Farm Loss Worksheet 3—Schedule F farming business(es) and Schedule E partnership or S corporation income or loss from farming business(es)

1.	Enter the amount from your 2010 Schedule(s) F, line 35	1.
2.	Enter the amount from your 2010 Schedule(s) E, line 31	2.
3.	Add lines 1 and 2. Is this amount less than 300,000 (150,000 if married filing separately)? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 4		3.
4.	Subtract 300,000 (150,000 if married filing separately) from line 3		4.
5.	Enter the amount from your 2010 Schedule(s) F, line 11	5.
6.	Enter the amount from your 2010 Schedule(s) E, line 30	6.
7.	Combine line 5 and line 6		7.
8.	Is line 7 greater than or equal to line 4? If yes, stop here. You do not have an excess farm in 2010. If no, continue to line 9.
9.	Enter your net gain/loss from the sale of farming business property reported on Form 4797	9.
10.	Enter your net gain/loss from the sale of farming business property reported on Schedule D	10.
11.	Combine line 9 and line 10. If zero or less, enter -0-		11.
12.	Add line 7 and line 11. Is this greater than or equal to line 4? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 13		12.
13.	Enter the amount from your 2009 Schedule(s) F, line 36	13.
14.	Enter the amount from your 2009 Schedule(s) E, line 32	14.
15.	Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D. If zero or less, enter -0-	15.
16.	Enter the amount from your 2008 Schedule(s) F, line 36	16.
17.	Enter the amount from your 2008 Schedule(s) E, line 32	17.
18.	Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D. If zero or less, enter -0-	18.
19.	Enter the amount from your 2007 Schedule(s) F, line 36	19.
20.	Enter the amount from your 2007 Schedule(s) E, line 32	20.
21.	Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D. If zero or less, enter -0-	21.
22.	Enter the amount from your 2006 Schedule(s) F, line 36	22.
23.	Enter the amount from your 2006 Schedule(s) E, line 32	23.
24.	Enter your combined net gain/loss from the sale of farming business property reported on your 2006 Form 4797 and Schedule D. If zero or less, enter -0-	24.
25.	Enter the amount from your 2005 Schedule(s) F, line 36	25.
26.	Enter the amount from your 2005 Schedule(s) E, line 32	26.
27.	Enter your combined net gain/loss from the sale of farming business property reported on your 2005 Form 4797 and Schedule D. If zero or less, enter -0-	27.
28.	Combine lines 13 through 27. If zero or less, enter -0-		28.
29.	Enter the greater of line 28 or 300,000 (150,000 if married filing separately)		29.
30.	Add line 12 and line 29		30.
31.	Excess farm loss. Subtract line 3 from line 30. If zero or less, 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		31.

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Excess Farm Loss Worksheet 4—Schedule F farming business(es), Schedule C activity of processing a farm commodity, Schedule E partnership or S corporation income or loss from farming business(es), and Form 4835 rental income or loss

1.	Enter the amount from your 2010 Schedule(s) F, line 35	1.
2.	Enter the total amount from your 2010 Schedule(s) C, line 28 and line 30, for activity of processing a farm commodity	2.
3.	Enter the amount from your 2010 Schedule(s) E, line 31, for interest in a partnership or S corporation involved in farming businesses	3.
4.	Enter the amount from your 2010 Form 4835, line 31	4.
5.	Add lines 1, 2, 3, and 4. Is this amount less than 300,000 (150,000 if married filing separately)? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 6		5.
6.	Subtract 300,000 (150,000 if married filing separately) from line 5		6.
7.	Enter the amount from your 2010 Schedule(s) F, line 11	7.
8.	Enter the amount from your 2010 Schedule(s) C, line 7	8.
9.	Enter the amount from your 2010 Schedule(s) E, line 30	9.
10.	Enter the amount from your 2010 Form 4835, line 7	10.
11.	Combine lines 7, 8, 9, and 10		11.
12.	Is line 11 greater than or equal to line 6? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 13.
13.	Enter your net gain/loss from the sale of farming business property reported on Form 4797	13.
14.	Enter your net gain/loss from the sale of farming business property reported on Schedule D	14.
15.	Combine line 13 and line 14. If zero or less, enter -0-		15.
16.	Add lines 11 and 15. Is this greater than or equal to line 6? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 17		16.
	TIP: Lines 17 through 43 help you calculate the threshold amount discussed in the instructions. The threshold amount is the greater of $300,000 ($150,000 if 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.
17.	Enter the amount from your 2009 Schedule(s) F, line 36	17.
18.	Enter the amount from your 2009 Schedule(s) C, line 31 .	18.
19.	Enter the amount from your 2009 Schedule(s) E, line 32	19.
20.	Enter the amount from your 2009 Form 4835, line 32	20.
21.	Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D. If zero or less, enter -0-	21.
22.	Enter the amount from your 2008 Schedule(s) F, line 36	22.
23.	Enter the amount from your 2008 Schedule(s) C, line 31	23.
24.	Enter the amount from your 2008 Schedule(s) E, line 32	24.
25.	Enter the amount from your 2008 Form 4835, line 32	25.
26.	Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D. If zero or less, enter -0-	26.
27.	Enter the amount from your 2007 Schedule(s) F, line 36	27.
28.	Enter the amount from your 2007 Schedule(s) C, line 31	28.
				(Continued on next page)

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Excess Farm Loss Worksheet 4 (Continued)

29.	Enter the amount from your 2007 Schedule(s) E, line 32	29.
30.	Enter the amount from your 2007 Form 4835, line 32	30.
31.	Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D. If zero or less, enter -0-	31.
32.	Enter the amount from your 2006 Schedule(s) F, line 36	32.
33.	Enter the amount from your 2006 Schedule(s) C, line 31	33.
34.	Enter the amount from your 2006 Schedule(s) E, line 32	34.
35.	Enter the amount from your 2006 Form 4835, line 32	35.
36.	Enter your combined net gain/loss from the sale of farming business property reported on your 2006 Form 4797 and Schedule D. If zero or less, enter -0-	36.
37.	Enter the amount from your 2005 Schedule(s) F, line 36	37.
38.	Enter the amount from your 2005 Schedule(s) C, line 31 .	38.
39.	Enter the amount from your 2005 Schedule(s) E, line 32	39.
40.	Enter the amount from your 2005 Form 4835, line 32	40.
41.	Enter your combined net gain/loss from the sale of farming business property reported on your 2005 Form 4797 and Schedule D. If zero or less, enter -0-	41.
42.	Combine lines 17 through 41. If zero or less, enter -0-		42.
43.	Enter the greater of line 42 or 300,000 (150,000 if married filing separately)		43.
44.	Add lines 16 and 43		44.
45.	Excess farm loss. Subtract line 5 from line 44. If zero or less, 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		45.

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Excess Farm Loss Worksheet 5—Form 4835 for farm rental income or loss from farming business

1.	Enter the amount from your 2010 Form 4835, line 31. Is this amount less than 300,000 (150,000 if married filing separately)? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 2	1.
2.	Subtract 300,000 (150,000 if married filing separately) from line 1	2.
3.	Enter the amount from your 2010 Form 4835, line 7	3.
4.	Is line 3 greater than or equal to line 2? If yes, stop here. You do not have an excess farm in 2010. If no, continue to line 5.
5.	Enter your net gain/loss from the sale of farming business property reported on Form 4797	5.
6.	Enter your net gain/loss from the sale of farming business property reported on Schedule D	6.
7.	Combine line 5 and line 6. If zero or less, enter -0-		7.
8.	Add line 3 and line 7. Is this greater than or equal to line 2? If yes, stop here. You do not have an excess farm loss in 2010. If no, continue to line 9		8.
9.	Enter the amount from your 2009 Form 4835, line 32	9.
10.	Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D. If zero or less, enter -0-	10.
11.	Enter the amount from your 2008 Form 4835, line 32	11.
12.	Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D. If zero or less, enter -0-	12.
13.	Enter the amount from your 2007 Form 4835, line 32	13.
14.	Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D. If zero or less, enter -0-	14.
15.	Enter the amount from your 2006 Form 4835, line 32	15.
16.	Enter your combined net gain/loss from the sale of farming business property reported on your 2006 Form 4797 and Schedule D. If zero or less, enter -0-	16.
17.	Enter the amount from your 2005 Form 4835, line 32	17.
18.	Enter your combined net gain/loss from the sale of farming business property reported on your 2005 Form 4797 and Schedule D. If zero or less, enter -0-	18.
19.	Combine lines 9 through 18. If zero or less, enter -0-		19.
20.	Enter the greater of line 19 or 300,000 (150,000 if married filing separately)		20.
21.	Add lines 8 and 20		21.
22.	Excess farm loss. Subtract line 1 from line 21. If zero or less, 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		22.

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Part III. Farm Income—Accrual Method(p8)

Chapter 11 bankruptcy.(p8)