skip navigation

Search Help
Navigation Help
Topic Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#
International
Tax Topic Index
FAQs
Forms
Publications
Tax Topics
Comments
About Tax Map
IRS.gov Website
Instructions for Schedule F (Form 1040)
Left Arrow Previous Page | Table of Contents | Index | Next Page Right Arrow
taxmap/instr/i1040sf-008.htm#en_us_publink_17152rd0e2825

Part III. Farm Income—Accrual Method(p12)

rule
You may be required to use the accrual accounting method. If you use the 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. For information about accounting periods, see Pub. 538, Accounting Periods and Methods.
taxmap/instr/i1040sf-008.htm#en_us_publink_17152rd0e2849
Chapter 11 bankruptcy.(p12)
rule
If you were a debtor in a chapter 11 bankruptcy case during 2012, see Chapter 11 Bankruptcy Cases under Income in the Instructions for Form 1040 and the Instructions for Schedule SE (Form 1040).
taxmap/instr/i1040sf-008.htm#en_us_publink_17152rd0e2859

Lines 38a Through 40c(p12)

rule
See the instructions for lines 3a through 5c.
taxmap/instr/i1040sf-008.htm#en_us_publink_17152rd0e2871

Line 43(p12)

rule
See Line 8, earlier.
taxmap/instr/i1040sf-008.htm#f17152r
pencil

Excess Farm Loss Worksheet 1—Schedule F (Form 1040) 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 2012 Schedule(s) F (Form 1040), line 33. 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 2012. If no, continue to line 2 1.   
2.Subtract $300,000 ($150,000 if married filing separately) from line 12.   
3.Enter the amount from your 2012 Schedule(s) F (Form 1040), line 9 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 2012. If no, continue to line 5.   
5.Enter your net gain/loss from the sale of farming business property reported on Form 47975.   
6.Enter your net gain/loss from the sale of farming business property reported on Schedule D (Form 1040)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 2012. If no, continue to line 9 8. 
9.Enter the amount from your 2011 Schedule(s) F (Form 1040), line 34 9.   
10.Enter your combined net gain/loss from the sale of farming business property reported on your 2011 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 10.   
11.Enter the amount from your 2010 Schedule(s) F (Form 1040), line 36 11.   
12.Enter your combined net gain/loss from the sale of farming business property reported on your 2010 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 12.   
13.Enter the amount from your 2009 Schedule(s) F (Form 1040), line 36 13.   
14.Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 14.   
15.Enter the amount from your 2008 Schedule(s) F (Form 1040), line 36 15.   
16.Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 16.   
17.Enter the amount from your 2007 Schedule(s) F (Form 1040), line 36 17.   
18.Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D (Form 1040). 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 2021. 
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.  
      
taxmap/instr/i1040sf-008.htm#w17152r2a
pencil

Excess Farm Loss Worksheet 2—Schedule F (Form 1040) farming businesses and Schedule C (Form 1040) activity of processing a farm commodity

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 businesses.

1.Enter the amount from your 2012 Schedule(s) F (Form 1040), line 331.   
2.Enter the total amount from your 2012 Schedule(s) C (Form 1040), line 28 and line 302.   
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 2012. If no, continue to line 4 3. 
4.Subtract $300,000 ($150,000 if married filing separately) from line 34. 
5.Enter the amount from your 2012 Schedule(s) F (Form 1040), line 95.   
6.Enter the amount from your 2012 Schedule(s) C (Form 1040), line 76.   
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 loss in 2012. If no, continue to line 9.   
9.Enter your net gain/loss from the sale of farming business property reported on Form 47979.   
10.Enter your net gain/loss from the sale of farming business property reported on Schedule D (Form 1040)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 2012. If no, continue to line 13 12. 
13.Enter the amount from your 2011 Schedule(s) F (Form 1040), line 34 13.   
14.Enter the amount from your 2011 Schedule(s) C (Form 1040), line 3114.   
15.Enter your combined net gain/loss from the sale of farming business property reported on your 2011 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 15.   
16.Enter the amount from your 2010 Schedule(s) F (Form 1040), line 36 16.   
17.Enter the amount from your 2010 Schedule(s) C (Form 1040), line 31 17.   
18.Enter your combined net gain/loss from the sale of farming business property reported on your 2010 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 18.   
19.Enter the amount from your 2009 Schedule(s) F (Form 1040), line 36 19.   
20.Enter the amount from your 2009 Schedule(s) C (Form 1040), line 31 20.   
      
taxmap/instr/i1040sf-008.htm#w17152r2b

Excess Farm Loss Worksheet 2 (Continued)

21.Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 21.   
22.Enter the amount from your 2008 Schedule(s) F (Form 1040), line 36 22.   
23.Enter the amount from your 2008 Schedule(s) C (Form 1040), line 3123.   
24.Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 24.   
25.Enter the amount from your 2007 Schedule(s) F (Form 1040), line 36 25.   
26.Enter the amount from your 2007 Schedule(s) C (Form 1040), line 31 26.   
27.Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D (Form 1040). 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 lines 12 and 2930. 
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.  
      
taxmap/instr/i1040sf-008.htm#w17152r3a
pencil

Excess Farm Loss Worksheet 3—Schedule F (Form 1040) farming businesses and Schedule E (Form 1040) partnership or S corporation income or loss from farming businesses

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 businesses.

1.Enter the amount from your 2012 Schedule(s) F (Form 1040), line 331.   
2.Enter the amount from your 2012 Schedule(s) E (Form 1040), line 312.   
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 2012. If no, continue to line 4 3. 
4.Subtract $300,000 ($150,000 if married filing separately) from line 34. 
5.Enter the amount from your 2012 Schedule(s) F (Form 1040), line 95.   
6.Enter the amount from your 2012 Schedule(s) E (Form 1040), line 306.   
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 loss in 2012. If no, continue to line 9.   
9.Enter your net gain/loss from the sale of farming business property reported on Form 47979.   
10.Enter your net gain/loss from the sale of farming business property reported on Schedule D (Form 1040)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 2012. If no, continue to line 13 12. 
13.Enter the amount from your 2011 Schedule(s) F (Form 1040), line 34 13.   
14.Enter the amount from your 2011 Schedule(s) E (Form 1040), line 32 14.   
15.Enter your combined net gain/loss from the sale of farming business property reported on your 2011 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 15.   
16.Enter the amount from your 2010 Schedule(s) F (Form 1040), line 36 16.   
17.Enter the amount from your 2010 Schedule(s) E (Form 1040), line 32 17.   
18.Enter your combined net gain/loss from the sale of farming business property reported on your 2010 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 18.   
19.Enter the amount from your 2009 Schedule(s) F (Form 1040), line 36 19.   
20.Enter the amount from your 2009 Schedule(s) E (Form 1040), line 32 20.   
      
taxmap/instr/i1040sf-008.htm#w17152r3b

Excess Farm Loss Worksheet 3 (Continued)

21.Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 21.   
22.Enter the amount from your 2008 Schedule(s) F (Form 1040), line 36 22.   
23.Enter the amount from your 2008 Schedule(s) E (Form 1040), line 32 23.   
24.Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D (Form (1040). If zero or less, enter -0- 24.   
25.Enter the amount from your 2007 Schedule(s) F (Form 1040), line 36 25.   
26.Enter the amount from your 2007 Schedule(s) E (Form 1040), line 32 26.   
27.Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D (Form 1040). 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 lines 12 and 2930. 
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.  
      
taxmap/instr/i1040sf-008.htm#w17152r4
pencil

Excess Farm Loss Worksheet 4—Schedule F (Form 1040) farming businesses, Schedule C (Form 1040) activity of processing a farm commodity, Schedule E (Form 1040) partnership or S corporation income or loss from farming businesses, and Form 4835 rental income or loss

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 businesses.

1.Enter the amount from your 2012 Schedule(s) F (Form 1040), line 331.   
2.Enter the total amount from your 2012 Schedule(s) C (Form 1040), line 28 and line 30, for activity of processing a farm commodity2.   
3.Enter the amount from your 2012 Schedule(s) E (Form 1040), line 31, for interest in a partnership or S corporation involved in farming businesses 3.   
4.Enter the amount from your 2012 Form 4835, line 314.   
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 2012. If no, continue to line 6 5. 
6.Subtract $300,000 ($150,000 if married filing separately) from line 56. 
7.Enter the amount from your 2012 Schedule(s) F (Form 1040), line 97.   
8.Enter the amount from your 2012 Schedule(s) C (Form 1040), line 78.   
9.Enter the amount from your 2012 Schedule(s) E (Form 1040), line 309.   
10.Enter the amount from your 2012 Form 4835, line 710.   
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 2012. If no, continue to line 13.   
13.Enter your net gain/loss from the sale of farming business property reported on Form 479713.   
14.Enter your net gain/loss from the sale of farming business property reported on Schedule D (Form 1040)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 2012. 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 (2007-2011), 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 2011 Schedule(s) F (Form 1040), line 34 17.   
18.Enter the amount from your 2011 Schedule(s) C (Form 1040), line 31 .18.   
19.Enter the amount from your 2011 Schedule(s) E (Form 1040), line 3219.   
20.Enter the amount from your 2011 Form 4835, line 32 20.   
21.Enter your combined net gain/loss from the sale of farming business property reported on your 2011 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 21.   
22.Enter the amount from your 2010 Schedule(s) F (Form 1040), line 36 22.   
23.Enter the amount from your 2010 Schedule(s) C (Form 1040), line 31 23.   
24.Enter the amount from your 2010 Schedule(s) E (Form 1040), line 32 24.   
25.Enter the amount from your 2010 Form 4835, line 3225.   
26.Enter your combined net gain/loss from the sale of farming business property reported on your 2010 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 26.   
27.Enter the amount from your 2009 Schedule(s) F (Form 1040), line 36 27.   
28.Enter the amount from your 2009 Schedule(s) C (Form 1040), line 3128.   
     (Continued on next page)
taxmap/instr/i1040sf-008.htm#w17152r5

Excess Farm Loss Worksheet 4 (Continued)

29.Enter the amount from your 2009 Schedule(s) E (Form 1040), line 3229.   
30.Enter the amount from your 2009 Form 4835, line 32 30.   
31.Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 31.   
32.Enter the amount from your 2008 Schedule(s) F (Form 1040), line 36 32.   
33.Enter the amount from your 2008 Schedule(s) C (Form 1040), line 31 33.   
34.Enter the amount from your 2008 Schedule(s) E (Form 1040), line 32 34.   
35. Enter the amount from your 2008 Form 4835, line 3235.   
36.Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 36.   
37.Enter the amount from your 2007 Schedule(s) F (Form 1040), line 36 37.   
38.Enter the amount from your 2007 Schedule(s) C (Form 1040), line 31 . 38.   
39.Enter the amount from your 2007 Schedule(s) E (Form 1040), line 3239.   
40.Enter the amount from your 2007 Form 4835, line 3240.   
41.Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D (Form 1040). 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 4344. 
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.  
      
taxmap/instr/i1040sf-008.htm#w17152r6
pencil

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

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 2012 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 2012. If no, continue to line 2 1.   
2.Subtract $300,000 ($150,000 if married filing separately) from line 12.   
3.Enter the amount from your 2012 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 loss in 2012. If no, continue to line 5.   
5.Enter your net gain/loss from the sale of farming business property reported on Form 47975.   
6.Enter your net gain/loss from the sale of farming business property reported on Schedule D (Form 1040)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 2012. If no, continue to line 9 8. 
9.Enter the amount from your 2011 Form 4835, line 32 9.   
10.Enter your combined net gain/loss from the sale of farming business property reported on your 2011 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 10.   
11.Enter the amount from your 2010 Form 4835, line 32 11.   
12.Enter your combined net gain/loss from the sale of farming business property reported on your 2010 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 12.   
13.Enter the amount from your 2009 Form 4835, line 32 13.   
14.Enter your combined net gain/loss from the sale of farming business property reported on your 2009 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 14.   
15.Enter the amount from your 2008 Form 4835, line 32 15.   
16.Enter your combined net gain/loss from the sale of farming business property reported on your 2008 Form 4797 and Schedule D (Form 1040). If zero or less, enter -0- 16.   
17.Enter the amount from your 2007 Form 4835, line 32 17.   
18.Enter your combined net gain/loss from the sale of farming business property reported on your 2007 Form 4797 and Schedule D (Form 1040). 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 2021. 
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.  
      
Left Arrow Previous Page | Table of Contents | Index | Top of Page | Next Page Right Arrow