Farm Income and Expense: Feed Purchased
When reporting farm income and expenses, feed purchased is considered a deductible business expense if it is used in the operation of a farm for agricultural production. This includes feed for livestock, poultry, or other farm animals that are part of your farming operation.
Reporting Feed Expenses on Tax Forms
- Form 4835 - Farm Rental Income and Expenses: This form is used to report income and expenses related to farm rental activities. If you are a farmer or farm operator, you may use Form 4835 to report feed expenses as part of your operating costs.
- Form 1040, Schedule 1 (Line 6): If you are reporting farm income or loss, you may report it on Schedule 1, line 6. Feed expenses are typically included in the total farm expenses reported here.
- Form 461 (Line 6): This form is used to report farm income or loss, and you should enter any farm income or loss reported on Schedule 1 (Form 1040), line 6, or other applicable forms.
How to Report Feed Purchases
Feed purchased for farm animals is deductible as a business expense. To claim this deduction:
- Keep detailed records of all feed purchases, including receipts, invoices, and dates.
- Ensure the feed is used directly in your farming operation (e.g., for livestock, dairy, poultry).
- Report the total feed expenses as part of your farm operating expenses on Form 4835 or Schedule F (if applicable).
Software Assistance for Reporting
Online Taxes (OLT) software can guide you through adding Form 4835 to your tax return. Within the software:
- Navigate to the Federal section under Income.
- Click on "Show more" near Rental, Royalty, Partnership, S Corp, Trust.
- Select "Add or Edit" next to Farm Rental Income and Expenses - Form 4835.
- Follow on-screen instructions to input feed expenses and other farm-related costs.
Source:
Farmer's Tax Guide
Form 461 Instructions
Form 4835 Instructions
Disclaimer: Always verify details with the official IRS forms and instructions or your state Department of Revenue. The information provided is based on retrieved context and may not reflect all current tax rules.