Farm Income - Car and Truck Expense
When reporting farm income, expenses related to the use of cars and trucks may be deductible if they are used in the farming business. These expenses must be directly connected to your farming operations to qualify for deduction.
Reporting Car and Truck Expenses
- Car and truck expenses should be reported on Form 4835, titled "Farm Rental Income and Expenses," if you are using Schedule F (Form 1040) to report farm income.
- Specifically, car expenses are reported on line 10 of Form 4835.
- If you are claiming depreciation on your vehicle, you must attach Form 4562 and provide details about the vehicle’s use in Part V of that form.
- Other business-related expenses (excluding meals) are reported on line 32 of Form 4835. Note that only 50% of non-entertainment-related meals can be included.
Important Considerations
- Only the portion of car and truck use directly related to farming activities is deductible.
- Keep detailed records of mileage, dates, and purposes of trips to support your deductions.
- Refer to Publication 463 for guidance on business use of vehicles and recordkeeping requirements.
Source:
Form 4835 - Farm Rental Income and Expenses
Form 4562 - Depreciation and Amortization
Publication 463 - Travel, Entertainment, Gift, and Car Expenses
Publication 225 - Farmer's Tax Guide
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.