Reporting Farm Income and Expenses

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Note For additional and updated information, please see the IRS' Agriculture Tax Center.
FS-2007-20, June 2007
To educate taxpayers about their filing obligations, this fact sheet, the thirteenth in a series,
highlights some income sources and deductible business expenses of farmers. Incorrect reporting
of farm income and expenses accounts for part of the estimated $345 billion per year in unpaid
taxes, according to IRS estimates.
Income Sources
Farmers may receive income from many sources, but the most common source is the sale of
livestock, produce, grains, and other products raised or bought for resale. The entire amount a
farmer receives, including money and the fair market value of any property or services, is
reported on IRS Schedule F, Profit or Loss From Farming.
Bartering is another income source for farmers. Bartering occurs when farm products are traded
for other farm products, property, someone elses labor or personal items. For example, if a
farmer helps another farmer build a barn and receives a cow for his work, the recipient of the
cow must report its fair market value as ordinary income. If the farmer uses this cow for business
purposes, he may be able to claim depreciation over its useful life as well as deduct the expenses
incurred for the cow. However, if the cow is for personal use, no depreciation or expenses for the
cow would be deductible.
Other income sources include:

Cooperative distributions

Agricultural program payments

Commodity Credit Corporation (CCC) loans

Crop insurance proceeds and federal crop disaster payments

Custom hire (machine work) income

Deductible Expenses
The ordinary and necessary costs of operating a farm for profit are deductible business
expenses. An ordinary expense is an expense that is common and accepted in the business. A
necessary expense is one that is appropriate for the business.

Among the deductible expenses are amounts paid to farm labor. If a farmer pays his child to do
farm work and a true employer-employee relationship exists, reasonable wages or other
compensation paid to the child is deductible. The wages are included in the childs income, and
the child may have to file an income tax return. These wages may also be subject to social
security and Medicare taxes if the child is age 18 or older.
Another deductible expense is depreciation. Farmers can depreciate most types of tangible
property except land such as buildings, machinery, equipment, vehicles, certain livestock
and furniture. Farmers can also depreciate certain intangible property, such as copyrights,
patents, and computer software. To be depreciable, the property must

Be property the farmer owns

Be used in the farmers business or income-producing activity

Have a determinable life

Have a useful life that extends substantially beyond the year placed in service

Some expenses paid during the tax year may be partly personal and partly business. Examples
include gasoline, oil, fuel, water, rent, electricity, telephone, automobile upkeep, repairs,
insurance, interest and taxes. Farmers must allocate these expenses between their business and
personal parts. Generally, the personal part of these expenses is not deductible.
For example, a farmer paid $1,500 for electricity during the tax year. He used one-third of the
electricity for personal purposes and two-thirds for farming. Under these circumstances, twothirds of the electricity expense, or $1,000, is deductible as a farm business expense. Records
must be maintained to document the business portion of the expense.
Information about other deductible expenses and reporting requirements can be found in IRS
Publication 225, Farmers Tax Guide.

Tips on Reporting Natural Resource Income

FS-2013-6, April 2013

Taxpayers who own land that contains valuable natural resources should be aware that arranging
for the development of the resources by means of a lease creates tax consequences.
Landowners may make complex financial agreements to receive royalty, bonus or other income
in exchange for access to the resources on their land, such as natural gas and oil from shale

deposits. Here are some important facts from the Internal Revenue Service about these
transactions.
Lease Agreements
Natural resource extraction agreements involve payments for extracting resources such as oil and
gas. Payments can include delay rental, royalty and lease bonus payments.
Taxpayers who receive these payments are royalty owners who do not have a working interest in
extraction operations. Taxpayers should normally report these payments as income on Part I of
Schedule E (Form 1040), Supplemental Income and Loss. Income reported on Schedule E is
usually not subject to self-employment tax.
Taxpayers who do have a working interest in the extraction operations are subject to selfemployment tax, and must file Schedule C (Form 1040), Profit or Loss from Business.
Leases and Lease Bonuses
Taxpayers/lessors typically receive a lease bonus from a lessee the party that extracts the
natural resource in consideration for granting the lease. A lease bonus may be paid in a lumpsum or multi-year payments. The lessee should provide the taxpayer with a Form 1099-MISC,
Miscellaneous Income, listing the amount of bonus payments as Rents in Box 1. Taxpayers
usually report their lease bonus income as rent on Schedule E.
Royalty Payments
Taxpayers/lessors may receive periodic payments for their share of the natural resource. These
payments are commonly known as royalty payments. They must be based on natural resource
production on a recurring or intermittent basis, per the terms of the lease.
The lessee should provide the taxpayer with a Form 1099-MISC reporting the payments as
Royalties in Box 2. Most taxpayers report royalty payments received as royalty income on
Schedule E.
Depletion Deduction
Depletion is the using up of natural resources by mining, drilling, quarrying stone, or cutting
timber. The depletion deduction allows a taxpayer who owns an economic interest in a mineral
deposit or standing timber to reduce their taxable income and account for the reduction of
reserves.

There are two ways of figuring the depletion deduction: cost depletion and percentage depletion.
A taxpayer who owns an interest in a mineral deposit must use the method that yields the greater
deduction. The percentage depletion rate for federal tax purposes varies depending on the
mineral being produced.
A taxpayer must be an independent producer or royalty owner to use percentage depletion for oil
and gas. A taxpayer who owns an interest in standing timber can only use cost depletion.
Taxpayers claim depletion and other allowable deductions in the Expenses section in Part I of
Schedule E. See IRS Publication 535, Business Expenses, for more information.
Additional Expenses
Taxpayers who own working interests may be able to deduct expenses to reduce their natural
resource income. This applies to taxpayers who have working interests in extraction operations.
Expenses may include overhead, dry holes, certain legal and administrative fees and county
health department water testing fees. Severance tax and operation expenses should be detailed on
an Authorization for Expenditures (AFE) statement provided by the exploration company.
Only taxpayers who have a working interest in the extraction operations may deduct business
expenses such as depreciation, tangible or intangible costs, utilities, car and truck and travel from
their natural resource extraction income.
Free Natural Gas
Taxpayers may receive natural gas from a lessee oil and gas company. The receipt of gas may be
taxable income if the gas is not from the taxpayer/lessors retained ownership interest. In general,
the ownership of raw gas extracted by a lessee is based on the lease terms and state law.
Reporting Rental and Royalty Income
Rental and royalty income or loss is calculated on Schedule E. That amount is then transferred to
Line 17 on Form 1040 to be combined with income received from other sources such as wages,
dividends and interest to determine total income. Net income from royalty and lease payments is
not considered passive income.
Estimated Tax
Since federal income tax is not typically withheld from these payments, taxpayers may want to
consider making estimated tax payments on their natural resource income. See Publication 505,
Tax Withholding and Estimated Tax, for more information.

Income from leasing mineral property and royalty payments for the extraction of natural
resources can be significant. Taxpayers who receive this type of income should familiarize
themselves with the tax rules to avoid an unexpected bill at tax time. More information is
available in Publication 525, Taxable and Nontaxable Income, and the Instructions for Form
1040, Schedule E and Form 1040, Schedule C.

Ten Things to Know about Farm Income and

Deductions
IRS Tax Tip 2013-41, March 26, 2013
If you earn money managing or working on a farm, you are in the farming business. Farms
include plantations, ranches, ranges and orchards. Farmers may raise livestock, poultry or fish, or
grow fruits or vegetables. Here are 10 things about farm income and expenses that the IRS wants
you to know.
1. Crop insurance proceeds. Insurance payments from crop damage count as income.
They should generally be reported the year they are received.
2. Deductible farm expenses. Farmers can deduct ordinary and necessary expenses as
business expenses. An ordinary farming expense is one that is common and accepted in
the farming business. A necessary expense is one that is appropriate for that business.
3. Employees and hired help. You can deduct reasonable wages you paid to your farms
full and part-time workers. You must withhold Social Security, Medicare and income
taxes from your employees wages.
4. Items purchased for resale. If you purchased livestock and other items for resale, you
may be able to deduct their cost in the year of the sale. This includes freight charges for
transporting livestock to your farm.
5. Repayment of loans. You can only deduct the interest you paid on a loan if the loan
proceeds are used for your farming business. You cannot deduct interest on a loan used
for personal expenses.
6. Weather-related sales. Bad weather may force you to sell more livestock or poultry
than you normally would. If so, you may be able to postpone reporting a gain from the
sale of the additional animals.

7. Net operating losses. If deductible expenses are more than income for the year, you may
have a net operating loss. You can carry that loss over to other years and deduct it. You
may get a refund of part or all of the income tax you paid for past years, or you may be
able to reduce your tax in future years.
8. Farm income averaging. You may be able to average some or all of the current year's
farm income by spreading it out over the past three years. This may lower your taxes if
your farm income is high in the current year and low in one or more of the past three
years. This method does not change your prior year tax. It only uses the prior year
information to figure your current year tax.
9. Fuel and road use. You may be able to claim a tax credit or refund of federal excise
taxes on fuel used on your farm for farm work.
10. Farmers Tax Guide. More information about farm income and deductions is in
Publication 225, Farmers Tax Guide. You can download it at IRS.gov, or call the IRS at
800-TAX-FORM (800-829-3676) to have it mailed to you.
Additional IRS Resources:
Publication 225, Farmers Tax Guide
Schedule F, Profit or Loss From Farming

Cancellation of Debt - Agriculture Tax Tips

If your debt is canceled or forgiven, other than as a gift or bequest to you, you must include the
canceled amount in gross income for tax purposes. Report the canceled amount on line 10 of
Schedule F if you incurred the debt in your farming business. If the debt is a non-business debt,
report the canceled amount on line 21 of Form 1040.

Form 1099-C
If a federal agency, financial institution, or credit union cancels or forgives your debt of $600 or
more, you will receive a Form 1099-C, Cancellation of Debt. The amount of debt canceled is
shown in box 2.

Qualified Farm Debt

You can exclude from income a canceled debt that is qualified farm debt owed to a qualified
person. This exclusion applies only if you were solvent when the debt was canceled or, if you
were insolvent, only to the extent the canceled debt is more than the amount by which you were
insolvent. Your debt is qualified farm debt if both of the following requirements are met.

You incurred it directly in operating a farming business

At least 50% of your total gross receipts for the 3 tax years preceding the
year of debt cancellation were from your farming business

Disaster Area Losses - Agriculture Tax Tips

Special rules apply to presidentially declared disaster area losses. A presidentially declared
disaster is a disaster that occurred in an area declared by the president to be eligible for federal
assistance under the Disaster Relief and Emergency Assistance Act.
This tax tip discusses the special rules for when to deduct a disaster area loss and the abatement
of interest on tax underpayments. For other special rules, see Publication 547.

When to Deduct Disaster Area Losses

If you have a deductible loss from a presidentially declared disaster area, you can elect to deduct
that loss on your return or amended return for the immediately preceding tax year. If you make
this election, the loss is treated as having occurred in the preceding year.
Note: Claiming a qualifying disaster loss on the previous year's return may result in a lower tax
for that year, often producing or increasing a cash refund.
You must make this election to take your casualty loss for the disaster in the preceding year by
the later of the following dates:

The due date (without extensions) for filing your tax return for the tax year in
which the disaster actually occurred

The due date (with extensions) for the return for the preceding tax year

Net Operating Losses - Agriculture Tax Tips

If your deductible loss from operating your farm is more than your other income for the year,
you may have a net operating loss (NOL). You may also have an NOL if you had a personal or
business-related casualty or theft loss that was more than your income.
Note: If you have an NOL this year, you can carry it to other years and deduct it. You may be
able to get a refund of all or part of the income tax you paid for past years, or you may be able to
reduce your tax in future years.

Carrybacks
Generally, you carry an NOL back to the two tax years before the NOL year and deduct it from
income you had in those years. You can choose not to carry back an NOL and only carry it
forward. There are rules for figuring how much of the NOL is used in each tax year and how
much is carried to the next tax year. Different rules apply to 2008 or 2009 NOL's. These rules are
explained in Publication 536.
Unless you choose to waive the carryback period, as discussed later, you must first carry the
entire NOL to the earliest carryback year. If your NOL is not used up, you can carry the rest to
the next earliest carryback year, and so on.

Refigured Tax
Refigure your deductions, credits, and tax for each of the years to which you carried back an
NOL. If your refigured tax is less than the tax you originally paid, you can apply for a refund by
filing Form 1040X, Amended U.S. Individual Income Tax Return (PDF), for each year affected,
or by filing Form 1045 (PDF). You will usually get a refund faster by filing Form 1045, and
generally you can use one Form 1045 to apply an NOL to all carryback years.

Exceptions to 2-Year Carryback Rule

Eligible Losses

Eligible Losses qualify for longer carryback periods. The carryback period for an Eligible Loss is
3 years. An Eligible Loss is any part of an NOL that:
1. Is from a casualty or theft, or
2. Is attributable to a Presidentially declared disaster for a qualified small
business

Note: An eligible loss does not include a farming loss.

Farming Loss

Farming Losses qualify for longer carryback periods. The carryback period for a Farming Loss is
5 years. A Farming Loss is the smaller of:
1. The amount which would be the NOL for the tax year if only income and
deductions attributable to farming businesses were taken into account, or
2. The NOL for the tax year

You can choose to treat a farming loss as if it were not a farming loss. If you make this choice,
the loss is subject to the 2-year carryback period. For more information, refer to, When To Use
an NOL in Publication 536.

Carryovers
If you do not use up the NOL in the carryback years, carry forward what remains of it to the 20
tax years following the NOL year. Start by carrying it to the first tax year after the NOL year. If
you do not use it up, carry over the unused part to the next year. Continue to carry over any
unused part of the NOL until you use it up or complete the 20-year carryforward period.
For an NOL occurring in a tax year beginning before August 6, 1997, the carry forward period is
15 years.

Crop Insurance and Crop Disaster Payments - Agriculture Tax Tips

You must include in income any crop insurance proceeds you receive as the result of crop
damage. You generally include them in the year you receive them. Treat as crop insurance
proceeds the crop disaster payments you receive from the federal government as the result of
destruction or damage to crops, or the inability to plant crops because of drought, flood, or any
other natural disaster.
Note: You can request income tax withholding from crop disaster payments you receive from the
federal government. Use Form W-4V, Voluntary Withholding Request (PDF). Refer to How to
Get Tax Help in Publication 225 for information about ordering the form.

You May Choose To Postpone Reporting Until The Following

Year
If you use the cash method of accounting and receive crop insurance proceeds in the same tax
year in which the crops are damaged, you can choose to postpone reporting the proceeds as
income until the following tax year. You can make this choice if you can show you would have
included income from the damaged crops in any tax year following the year the damage
occurred.

How To Postpone Reporting Of Crop Insurance Proceeds

To choose to postpone reporting crop insurance proceeds received in the current year, report the
amount you received on line 8a of Schedule F (PDF), but do not include it as a taxable amount
on line 8b. Check the box on line 8c and attach a statement to your tax return. It must include
your name and address and contain the following information:

A statement that you are making a choice under IRC section 451(d) and
Treasury Regulation section 1.451-6

The specific crop or crops destroyed or damaged

A statement that under your normal business practice you would have
included income from the destroyed or damaged crops in gross income for a
tax year following the year the crops were destroyed or damaged

The cause of the destruction or damage and the date or dates it occurred

The total payments you received from insurance carriers, itemized for each
specific crop and the date you received each payment

The name of each insurance carrier from whom you received payments

Farm Income Averaging - Agriculture Tax Tips

If you are engaged in a farming business, you may be able to average all or some of your current
year's farm income by shifting it to the 3 prior years (base years). The term "farming business" is
defined in the instructions for Schedule J (Form 1040) (PDF).

Who Can Use Farm Income Averaging

You can elect to use farm income averaging if, in the year of the election, you are engaged in a
farming business as an individual, a partner in a partnership, or a shareholder in an S corporation.
You do not need to have been engaged in a farming business in any base year.

Who Cannot Use Farm Income Averaging

Corporations, partnerships, S corporations, estates, and trusts cannot use farm income averaging.

Prepaid Farm Expenses - Agriculture Tax Tips

There may be a limit on your deduction for prepaid farm supplies if you use the cash method of
accounting to report your income and expenses. This limit will not apply, however, if you meet
one of the exceptions, described later.
Deposits are not considered prepaid farm expenses.

What is a Prepaid Farm Expense

Prepaid farm supplies are amounts you paid during the tax year for the following items:

Feed, seed, fertilizer, and similar farm supplies not used or consumed during
the year

Poultry (including egg-laying hens and baby chicks) bought for use (or for
both use and resale) in your farm business that would be deductible in the
following year if you had capitalized the cost and deducted it ratably (for
example, monthly) over the lesser of 12 months or the useful life of the
poultry

Poultry bought for resale and not resold during the year

What is Not a Prepaid Farm Expense

Prepaid farm supplies do not include any amount paid for farm supplies on hand at the end of the
tax year that you would have consumed if not for a fire, storm, flood, other casualty, disease, or
drought.

Deduction Limit
You can deduct an expense for prepaid farm supplies that does not exceed 50% of your other
deductible farm expenses in the year of payment. You can deduct an expense for any excess
prepaid farm supplies only for the tax year you use or consume the supplies.
The cost of poultry bought for use (or for both use and resale) in your farm business and not
allowed in the year of payment is deductible in the following year. The cost of poultry bought for
resale is deductible in the year you sell or otherwise dispose of that poultry.

Soil and Water Conservation - Agriculture Tax Tips

If you are in the business of farming, you can choose to currently deduct your expenses for soil
or water conservation or for the prevention of erosion of land used in farming. Otherwise, these
are capital expenses that must be added to the basis of the land. Conservation expenses for land
in a foreign country do not qualify for this special treatment. The deduction cannot be more than
25% of your gross income from farming.

Plan Certification
You can deduct your expenses for soil and water conservation only if they are consistent with a
plan approved by the Natural Resources Conservation Service (NRCS) of the Department of
Agriculture. If no such plan exists, the expenses must be consistent with a soil conservation plan
of a comparable state agency to be deductible. Keep a copy of the plan with your books and
records as part of the support for your deductions.

Choosing To Deduct
You can choose to deduct soil and water conservation expenses on your tax return for the first
year you pay or incur these expenses. If you choose to deduct them, you must deduct the total
allowable amount in the year they are paid or incurred. If you do not deduct the expenses, you
must capitalize them.
Note: If you receive cash rental for a farm you own that is not used in farm production, you can
not claim soil and water conservation expenses for that farm. These costs must be capitalized
into the land basis.
Example:

You own a farm in Iowa and live in California. You rent the farm for $125 in cash per acre and
do not materially participate in producing or managing production of the crops grown on the
farm. You cannot deduct your soil conservation expenses for this farm. You must capitalize the
expenses and add them to the basis of the land.

Commodity Credit Corporation Loans - Agriculture Tax Tips

Normally, you do not report loans you receive as income, and you report income from a crop for
the year you sell it. However, if you pledge part or all of your production to secure a CCC loan,
you can choose to treat the loan as if it were a sale of the crop and report the loan proceeds as
income for the year you receive them. You do not need approval from the IRS to adopt this
method of reporting CCC loans, even though you may have reported those received in earlier
years as taxable income for the year you sold the crop.
Once you report a CCC loan as income for the year received, you must report all CCC loans in
that year and later years in the same way, unless you get approval from the IRS to change to a
different method. Refer to Change in Accounting Method in Publication 225.
Note: You can request income tax withholding on CCC loan payments made to you. Use Form
W-4V, Voluntary Withholding Request (PDF). Refer to How to Get Tax Help in Publication 225
for information about ordering the form.

How To Choose To Report A CCC Loan As Income

To make the choice to report a loan as income, include the loan as income on line 7a of Schedule
F (PDF) for the year you receive it. Attach a statement to your return showing the details of the
loan.

Repayment of CCC Loans using CCC Certificates

Farmers who pledge part or all of their production to secure a CCC loan may not be properly
reporting market gain when they use CCC certificates in connection with paying off their loans.
See IR-2004-38, March 18, 2004, for more information regarding the tax considerations of this
transaction.

Sales Caused By Weather-Related Condition - Agriculture Tax Tips

If you sell more livestock, including poultry, than you normally would in a year because of a
drought, flood, or other weather-related condition, you may be able to choose to postpone
reporting the gain from selling the additional animals until the next year.

Eligibility To Postpone Reporting The Gain From Selling The

Additional Animals
You must meet all the following conditions to qualify:

Your principal trade or business is farming

You use the cash method of accounting

You can show that, under your usual business practices, you would not have
sold the animals this year except for the weather-related condition

The weather-related condition caused an area to be designated as eligible for

assistance by the federal government

Sales Made Before The Area Became Eligible

Sales made before the area became eligible for federal assistance qualify if the weather-related
condition that caused the sale also caused the area to be designated as eligible for federal
assistance. The designation can be made by the President, the Department of Agriculture (or any
of its agencies), or by other federal agencies.
You must file an election statement and the return by the due date of the return, including
extensions.

Fuel and Road Use Tax - Agriculture Tax Tips

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You may be eligible to claim a credit or refund of excise taxes on fuel used on a farm for farming
purposes. This applies if you are the owner, tenant, or operator of a farm. You can claim only a
credit for the tax on gasoline used on a farm for farming purposes. You can claim either a credit
or refund for the tax on aviation fuel used on a farm for farming purposes.

What Cannot be Claimed as a Credit or Refund

You cannot claim a credit or refund for the tax for the use of dyed diesel fuel or dyed kerosene
used on a farm for farming purposes.
You may claim a credit or refund for the tax on undyed diesel fuel or undyed kerosene used on a
farm for farming purposes as of 10/01/2005.
Note: Fuel is used on a farm for farming purposes only if used in carrying on a trade or business
of farming, on a farm in the United States, and for farming purposes.

How To Buy Diesel Fuel and Kerosene Tax Free

You buy dyed diesel fuel and dyed kerosene excise tax free. You must use them only for a
nontaxable use, including use on a farm for farming purposes. If you use the dyed fuel for a
taxable use, you could be subject to the excise tax and a penalty. For example, if a truck used on
a farm for farming purposes is also used on the highways (even though in connection with
operating the farm), tax applies to the diesel fuel used (or sold for use) in operating the truck on
the highways. The fuel was used off the farm for a taxable use.

Form 2290
If you use certain vehicles on public highways, such as a truck or truck tractor, registered or
required to be registered in your name, file Form 2290, Heavy Highway Vehicle Use Tax Return
(PDF), for the following purposes:

To figure and pay the tax due on heavy highway vehicles (taxable gross
weight 55,000 pounds or more) used during the period from July 1 to June 30

To claim an exemption from the tax when the vehicle is expected to be used
5,000 miles or less (7,500 for agricultural vehicles) during the period.

National Tobacco Growers Settlement Trust Payment - Agriculture Tax Tips

The National Tobacco Growers Settlement Trust (Trust) is an offshoot of the Master Settlement
Agreement (MSA) which was signed in November 1998 to settle claims brought by a majority of
the states against certain tobacco manufacturers, to recover health care costs associated with
tobacco use. As a result, tobacco manufacturers agreed to pay $5.15 billion to the Trust over a
12-year period, with the first installment of $380 million being paid in 1999 to tobacco
landowners, producers, and tobacco quota owners in 14 states.
Since that time, anecdotal information received by the IRS suggests that recipients of the
payments may not know the correct tax treatment, i.e., that the funds are taxable income in the
year constructively received.
Taxpayers may inquire regarding the federal tax treatment of their payments. For federal tax
purposes, these payments are considered gross income per Internal Revenue Code Section 61.
Under this Section, Gross Income is defined as, "all income from whatever source derived,"
except for those items specifically excluded by the Internal Revenue Code.
Eligibility to receive payments under the Trust described above is based upon a formula
developed and administered each Trust year by each state Certification entity. Under the terms of
the Trust agreement, that formula may be based upon any crop year or years from 1993 forward.
However, the State of Maryland (and other States may follow suit) is offering an additional
incentive above the National Settlement described above. Under the State of Maryland Buyout,
payments are made to eligible recipients in lieu of them growing tobacco or otherwise using their
land for tobacco purposes for a 10-year period. All payments received with respect to the State of
Maryland Buyout are to be treated as ordinary income (just as if the taxpayer grew and sold
tobacco) if the taxpayer is an active farmer subject to self-employment tax, or rental income if
the taxpayer rents out their land, as further described below.
Under Section 451 of the Internal Revenue Code and Section 1.451-1(a) of the Income Tax
Regulations, taxpayers using the cash receipts and disbursements method of accounting generally
include amounts in gross income for the taxable year in which funds are actually or
constructively received. With respect to the National Settlement, taxpayers will receive a 1099Misc statement in January 2002 that reflects the amount they should report on their 2001 return.
Verbiage is included on Form 1099 that indicates the applicable time period with respect to
payments received (From DECEMBER 29, 2000 through NOVEMBER 20, 2001) that should be
included in income on 2001 returns. Those receiving funds under the Maryland Buyout also
received a stuffer that detailed the proper tax treatment with respect to the Maryland payments.
The payment is reported as income on different tax forms, however, depending on specific
taxpayer situations. For example, a taxpayer who raises and sells a tobacco crop would report the
payment as gross income on Schedule F, "Profit or Loss From Farming," and would be subject to
applicable self-employment tax. Landowners or tobacco quota owners, who historically have

leased their tobacco-related property and did not help to produce the crop, would report the
settlement payments as farm rental income on Form 4835, "Farm Rental and Expenses."
IRS Publication 225, "Farmer's Tax Guide," has more information on these forms and how farm
income should be reported. If additional information is needed, please contact our toll free
number at 1(800) 829-1040.

IRS Reminds Farmers, National Tobacco Settlement Payments

are Taxable Each Year
WASHINGTON - Landowners, producers and tobacco quota owners who receive money from
the National Tobacco Settlement Trust must report those payments as income each year, the
Internal Revenue Service said today. See IR-2003-7, January 21, 2003 for the full text of the
information release.

Items Purchased for Resale - Agriculture Tax Tips

If you use the cash method of accounting, you can deduct the cost of livestock and other items
purchased for resale in Part I of Schedule F in the year of sale. This cost includes freight charges
for transporting the livestock to the farm. Ordinarily, this is the only time you can deduct the
purchase price. Refer to Farm Business Expenses, Items Purchased for Resale in Publication 225.
Example:
You report on the cash method. In 2000, you buy 50 steers you will sell in 2001. You will report
the sales price minus the purchase price (and any freight cost) as income in Part I of your 2001
Schedule F.

onage Dividends - Agriculture Tax Tips

If you buy farm supplies through a cooperative, you may receive income from the cooperative in
the form of patronage dividends. If you sell your farm products through a cooperative, you may

receive either patronage dividends or a per-unit retain certificate, explained later, from the
cooperative.

Form 1099-PATR
The cooperative will report the income to you on Form 1099-PATR (PDF) or a similar form and
send a copy to the IRS. Form 1099-PATR may also show an alternative minimum tax adjustment
that you must include if you are required to file Form 6251, Alternative Minimum Tax-Individuals (PDF). For information on the Alternative Minimum Tax, Refer to Publication 225.

Per-Unit Retain Certificates

A per-unit retain certificate is any written notice that shows the stated dollar amount of a per-unit
retain allocation made to you by the cooperative. A per-unit retain allocation is an amount paid to
patrons for products sold for them that is fixed without regard to the net earnings of the
cooperative. These allocations can be paid in money, other property, or qualified certificates.
Per-unit Retain Certificates issued by a cooperative generally receive the same tax treatment as
Patronage Dividends, discussed earlier.

List of Agriculture Companies in Uttar

Pradesh , India
Krishna Brothers

Company Description
we are garlic producer from last 20 years and quality product agricultural product
with good service's
Company Information

Country/Region: India

Address: 87 bye pass road agra agra, u.p

Business Type: Manufacturer

Main Products: Garlic,

Location: u.p

Year Established: 1984

Number Of Employess: 6 - 10

Total Revenue: Less than USD 100,000

Contact info

Contact Person: prakash gupta

Job Title: 87 bye pass road agra

Telephone:

Mobilephone:

Fax Number:

Prayas Trader
Company Description
Supplier of standard and custom -built product like office and school stationary,farm
machinery,computer and laptop and industrial machinery etc

Company Information

Country/Region: India

Address: Ghaziabad Ghaziabad, Uttar Pradesh

Business Type: Trading Company

Main Products: Paper, Farm Machinery, Computer, Laptop,

Location: Uttar Pradesh

Year Established: 2012

Number Of Employess: 1 - 5

Total Revenue: Less than USD 100,000

Contact info

Contact Person: DR SINGH

Job Title: Business Manager

Telephone:

Mobilephone:

Fax Number:

APLOMB OVERSEAS
Company Description
INTERNATIONAL TRADING OF CHEMICALS, AGRICULTURE, CEMENT, SUGAR, RICE,
WHEAT AND OTHER PRODUCTS. WE WRE ENGAGE TO SERVE AT BEST POSSIBLE
LEGAL WAYS.
Company Information

Country/Region: India

Address: 22/474, INDRA NAGAR LUCKNOW, UP

Business Type: Trading Company

Main Products: INTERNATIONAL TRADING,

Location: UP

Year Established: 1994

Number Of Employess: 1 - 5

Total Revenue: Less than USD 100,000

Contact info

Contact Person: PRABODH K SRIVASTAVA

Job Title: MD

Telephone:

Mobilephone:

Fax Number:

Poornima international
Company Description
Company Information

Country/Region: India

Address: No 14 Sumathi Complex, Municipal Office Street,

Business Type: Manufacturer

Main Products: Coir Pith, Coir,

Location: Tamil Nadu, India

Trade Capacity: - -

Production Capacity: - -

Contact info

Contact Person: Ms. Poorani K

Telephone:

Related Product

Coir

Agricultural Equipment

Agricultural Equipment

SRINI INTERNATIONAL
Company Description
Company Information

Country/Region: India

Address: 105/73b, South Garden, Peranayakkan Pudur

Business Type: Trading Company

Main Products: Coconut Products, Virgin Coconut Oil,

Location: Tamil Nadu, India

Trade Capacity: - -

Production Capacity: - -

Contact info

Contact Person: Mr. srini Internatio

Department: Director/CEO/General Manager

Job Title: Director

Telephone:

Mobilephone:

Fax Number:

Zip/Post Code: 641655

Kavish Nalan traders

Company Description
Company Information

Country/Region: India

Business Type: Trading Company, Distributor/Wholesaler

Main Products: Aloe Vera Products,

Location: Tamil Nadu, India

Trade Capacity: - -

Production Capacity: - -

Contact info

Contact Person: Mr. Nirmalraj C

Job Title: business

Telephone:

Zip/Post Code: 627011

Sai Inc
Company Description
Sai Inc is a Buying house, Inspections and Logistics Agency based in India, which
provides comprehensive sourcing services to International Buyers.We have a
dedicated, professional and experienced team, which is very well versified with
International Trends and Protocols whch reduces your operational cost and efforts
when buying from IndiaWe offer a complete array of services for sourcing the wide
variety of products and manufacturing resources in India.
Company Information

Country/Region: India

Address: C-10,Gandhi Nagar.Moradabad Moradabad, Utter Pradesh

Business Type: Buying Office

Main Products: ALuminium, Brass, Stainless Steel, Mozaic, Mosaic, Mop,

Mother Of Pearl, Horn, Enamelware, Wood, White Metal, Ceramic, Pottery,
Terracotta, Powder Coated, Glas,

Location: Utter Pradesh

Year Established: 2008

Number Of Employess: 6 - 10

Total Revenue: USD 100,000 - 500,000

Contact info

Contact Person: Shyam Mehrotra

Job Title: Manager Export

Telephone:

Mobilephone:

Fax Number:

Five Star Overseas

Company Description
Dear All,We sell all kind of agricultural products and raw plastic granules in middle
east , dubai , thiland , singapore.
Company Information

Country/Region: India

Address: 82,Muir Road Allahabad, Uttar Pradesh

Business Type: Trading Company

Main Products: Plastic, Granules, Rice, Potato,

Location: Uttar Pradesh

Year Established: 2009

Number Of Employess: 6 - 10

Total Revenue: USD 500,001 - 1,000,000

Contact info

Contact Person: Akash Gupta

Job Title: Partner

Telephone:

Mobilephone:

Fax Number:

Iron Stores Engg Works

Company Description
Iron Stores Engineering Works is a one name reckon within the industry of Tractor
parts and accessories for all tractors, Agricultural Implements and Diesel Fuel
injector, Fuel Pump and its parts Nozzles,Elements(plunger),Delivery valves for all
specified Diesel engines equivalent to English Peter,Kirloskar & Lister models. Our
tractor parts including M.F, Ford, Mahindra, Swaraj, H.M.T(zetor), Eicher, Escort and
other tractors.Agricultural impliments including Disc Harrow, Cultivator Tillers,
Rotary Tillers, Shovels and Water pumps for irrigation purpose.We, also offers
Tractor P.T.O Pulleys for all tractors since 1968. Our first client of tractor P.T.O Pulleys
are in Singapore in 1979.We offer a wide range of Nozzles, Elements and Delivery
Valves which are the parts of the Fuel injector and pump. We have a large capacity
to handle an order of 5000 pcs pr month.We are providing our customers a
comprehensive range of premium quality products with reliable and efficient
services.We, with an ardent and sanguine hope look forward to venture a better and
beneficial business association with your esteemed organisation.With Warm regards
Company Information

Country/Region: India

Address: P.B.No 51 Shiv mandir road Naiabadi

KHATAULI Muzaffarnagar, Uttar Pradesh

Website: www.makisew.com

Business Type: Manufacturer

Main Products: Tractor PTO Pulleys, Agricultural Equipment, Tractor Parts

Accessories, Fuel Injection & Pump,

Location: Uttar Pradesh

Year Established: 1968

Number Of Employess: 11 - 50

Total Revenue: Less than USD 100,000

Contact info

Contact Person: Muhd Quasim Akhtar

Job Title: Export Manager

Telephone:

Mobilephone:

Fax Number:

sdinstitute
Company Description
pl send deatils related to products.we are doing exports and imports for trading
purposes. specially shown in the item related to agriproducts, iron and steel. metal
scrap cooper, aluminium , wax .
Company Information

Country/Region: India

Address: 7/96 tilak nagar kanpur, utter pradesh

Business Type: Trading Company

Main Products: 1982,

Location: utter pradesh

Year Established: 1992

Number Of Employess: 1 - 5

Total Revenue: USD 1,000,001 - 2,000,000

Contact info

Contact Person: pankaj

Job Title: president

Telephone:

Mobilephone:

Fax Number:

Orgomatic Exports
Company Description
We are one of the largest exporter of thiophosgene, biotech intermediates,
speciality chemicals, Menthol Crystals, Mint Oils, Essential Oils, Aroma Chemicals,
Perfume Concentrates for Soaps, Creams, etc.
Company Information

Country/Region: India

Address: 264, Eldico Greens, Gomti Nagar, Lucknow, UP

Website: www.orgomaticexports.com

Business Type: Manufacturer

Main Products: Thiophosgene, Biotech Intermediates, Speciality Chemicals,

Etc.,

Location: UP

Year Established: 1972

Number Of Employess: 11 - 50

Total Revenue: USD 500,001 - 1,000,000

Contact info

Contact Person: Ranveer Kapoor

Job Title: CEo

Telephone:

Mobilephone:

Fax Number:

Kmilyastobacco.Company
Company Description
we are suppliers of indian chewing tobacco and other products. and we are looking
for buyers of indian chewing tobacco and wnt to make good bussiness relations.
Company Information

Country/Region: India

Address: near pulghalib farrukhabad road damdama roadways bus

stand kaimganj, uttar pradesh

Website: kmilyastobacco.bloombiz.com/

Business Type: Trading Company

Main Products: Chewing Tobacco, Raw Tobacco, Khaini,

Location: uttar pradesh

Year Established: 1985

Number Of Employess: 11 - 50

Total Revenue: Less than USD 100,000

Contact info

Contact Person: junaid ali khan

Job Title: Business Manager

Telephone:

Mobilephone:

Fax Number:

Pure Nature Foods

Company Description
We are a quality focused trading company with a emphasis on providing hygienic
and top end quality products to our customers. Our organization follows a zero
tolerance policy when it comes to the quality of the foodstuffs. The equipments and
machinery we have installed in our factory for production and to test quality
standards stand testimony to our quality policy.We are one of the in india to offer
Rice, Wheat Flour, Spices conforming to the important physical, chemical and
microbiological parameters as per international standards of european and
american markets.We can steam and sterilize our products to control micro
contamination in spices to required levels.Our procurement processes are detailed
and supervised by a team of professionals who are experts in their field. Products
are released in the market after due diligence on product quality.We make all efforts
to achieve our goal of complete customer satisfaction.

Company Information

Country/Region: India

Address: Sambhal Sambhal, Uttar Pradesh

Business Type: Trading Company

Main Products: Sharbati Rice, Basmati Rice, Atta, Wheat Flour, Masale,
Spices,

Location: Uttar Pradesh

Year Established: 2012

Number Of Employess: 1 - 5

Total Revenue: Less than USD 100,000

Contact info

Contact Person: Zaighem Abbas

Job Title: Business Manager

Telephone:

Mobilephone:

Fax Number:

Access Planetary
Company Description
Company Information

Country/Region: India

Address: 40, North Street, Moolaikaraipatti Post,

Website: http://wwwaccessplanetary.com

Business Type: Trading Company

Main Products: Jatropha Seeds, Castor Seeds, Pongamia Seeds, Gloriosa

Superba Seeds, , Agricultural Seeds,

Location: Tamil Nadu, India

Trade Capacity: - -

Production Capacity: - -

Contact info

Contact Person: Mr. Thiruppathi Raja

Department: Director/CEO/General Manager

Job Title: Director

Telephone:

Mobilephone:

Fax Number:

Zip/Post Code: 627354

angelpearl enterprises
Company Description
Company Information

Country/Region: India

Address: 4 / 17 V. AYYAM PALAYAM

Business Type: Trading Company, Distributor/Wholesaler

Main Products: VEGETABLES, FRUITS, SPICES, CLOTHS, YARN,

Location: Tamil Nadu, India

Trade Capacity: - -

Production Capacity: - -

Contact info

Contact Person: Mr. senthil raj

Telephone:

Zip/Post Code: 641663

Related Product

mangoes

fresh mangoes

carrot

ACROBIZ INTERNATIONAL
Company Description
WE ARE A TRADING COMPANY DEALING IN VARIOUS ITEMS - HANDICRAFTS,
PACKAGING PRODUCTS, CHEMICALS, PLASTICS ETC.

Company Information

Country/Region: India

Address: 62, NITIKHAND I, INDIRAPURAM GHAZIABAD, UTTAR PRADESH

Business Type: Trading Company

Main Products: PLASTICS, PACKAGING,

Location: UTTAR PRADESH

Year Established: 2002

Number Of Employess: 6 - 10

Total Revenue: USD 100,000 - 500,000

Contact info

Contact Person: P.K.SHARMA

Job Title: DIRECTOR

Telephone:

Mobilephone:

Wakeel Ahmad
Company Description
Greeting Of The Day!!!I am wakeel ahmad & my company is basically based on
fruits & vegetables.like in fruits mango orange banana.in vegetables onion garlic
potato ginger.
Company Information

Country/Region: India

Address: h.no 858 bangla qaziyara old town sitapur, Uttar Pradesh

Business Type: Distributor/Wholesaler

Main Products: Wakeel, Ahmed,

Location: Uttar Pradesh

Year Established: 2005

Number Of Employess: 11 - 50

Total Revenue: USD 100,000 - 500,000

Contact info

Contact Person: wakeel ahmad

Job Title: Business Manager

Telephone:

Mobilephone:

Fax Number:

Next Gen Biocontrols

Company Description
we are in production of various liquid biofertilizers, biopesticides, growth promoters
and micronutrients.
Company Information

Country/Region: India

Address: B-1/80 Sector-G Jankipuram Lucknow, UP

Website: nextgenbiocontrols.com

Business Type: Manufacturer

Main Products: Biofertilizers, Biopesticides, Growth Promoters,

Micronutrients,

Location: UP

Year Established: 2007

Number Of Employess: 101 - 500

Total Revenue: USD 1,000,001 - 2,000,000

Contact info

Contact Person: SAURABH MISHRA

Job Title: CEO

Telephone:

Mobilephone:

Fax Number:

Kaushal Consultants
Company Description
Financial Consultancy Offered:We assist in Project Finance,Investments for viable
projects worldwide. We also assit in arranging the credit enhancement, collaterals
and solve financial hurdles in Expot or Import
Company Information

Country/Region: India

Address: Sohnag Gorakhpur, Uttar Pradesh

Business Type: Agent

Main Products: Business Service, Inancial Service,

Location: Uttar Pradesh

Year Established: 2006

Number Of Employess: 6 - 10

Total Revenue: USD 100,000 - 500,000

Contact info

Contact Person: Kaushal Prasad

Job Title: CEO

Telephone:

Mobilephone:

Fax Number:

SR Impex Consultants
Company Description
I am into import and marketing of footwear adhesives and footwear components.
We have a huge client base with good contact in the footwear industry.
Company Information

Country/Region: United States

Address: 12 Master Plan Road Agra, UP

Business Type: Distributor/Wholesaler

Main Products: Footwear Adhesives, Components,

Location: UP

Year Established: 2004

Number Of Employess: 6 - 10

Total Revenue: USD 100,000 - 500,000

Contact info

Contact Person: Rishi Jain

Job Title: Proprietor

Telephone:

Mobilephone:

The Moon Exports

Company Description
We are pleased to welcome you to "The Moon Handicrafts" of India, the company is
known for its commitment to high quality products and shipment on time. We are
one of the leading manufacturer and exporter of Buffalo Horn Products based at
Sambhal, India. The company established by Mr. Kamran Ahmed Khan Qadri with a
vision to deliver high quality Buffalo Horn Products on time. The team of highly
skilled staff with precision tools manufacture Indian Genuine Water Buffalo Horn
Products. We manufacture Buffalo Horn Plates, Buffalo Horn Middle Tip Plates,
Buffalo Horn Button Blanks, Buffalo Horn Finished Buttons, Stag Imitation Buttons
made by bones, Bone Blanks, Horn Toggles, Horn Buckles, Rollers, Scales, Plates for
Spectacle frames, Hooves, Horn meals & Handicraft. Products made of Buffalo Horns
as per the demands specified by our customers. The Company maintains its name
by giving high quality products and proper colors at correct time as per the order
date mentioned by buyers.
Company Information

Country/Region: India

Address: Near Ek Minar Wali Masjid, Kot west Sambhal, Utter Pradesh

Website: themoon.bloombiz.com/

Business Type: Manufacturer

Main Products: Horn Button Blanks, Cow Horn Bangles, Buffalo Horn
Jewelry, Horn Toggles,

Location: Utter Pradesh

Year Established: 2015

Number Of Employess: 51 - 100

Total Revenue: Less than USD 100,000

Contact info

Contact Person: Mohd Kamran Khan

Job Title: Business Manager

Telephone:

Mobilephone:

Fax Number: