Prepaid feed and supplies
Up to 50% of other costs
Can You Write Off Prepaid Feed and Supplies?
Short answer: Cash-basis farmers can deduct prepaid feed in the year paid if it's a real purchase, has a business purpose, and doesn't exceed 50% of other farm expenses.
Farmers report on Schedule F; ordinary farm costs are deductible, and equipment can be expensed with Section 179 or bonus depreciation.
Records to keep: Keep receipts, 1099s or W-2s, a mileage log, and a note of the business purpose. W-2 employees should ask about employer reimbursement.
Prepaid feed and supplies
Up to 50% of other costs
Remote Workers / Freelancers / Consultants
Cash-basis farmers can deduct prepaid feed in the year paid if it's a real purchase, has a business purpose, and doesn't exceed 50% of other farm expenses.
Business justification
Cash-basis farmers can deduct prepaid feed in the year paid if it's a real purchase, has a business purpose, and doesn't exceed 50% of other farm expenses. Farmers report on Schedule F; ordinary farm costs are deductible, and equipment can be expensed with Section 179 or bonus depreciation.
Category
- Write-Offs by Job