Is schedule F equal to schedule C

[Jakyasar]

Hi

Sole proprietor, farm owner. CPA is asking if can use schedule for Pension purposes. 

Never heard of it but someone may have experience with farm owners.

Thanks 

 

[Paul I]

My understanding is you use line 34 from Schedule F to report your net farm profit or loss.  This is carried forward as net income from self-employment and is used for pension purposes.  This is analogous for non-farm net earnings from self-employment from Schedule C.

Note that line 23 on Schedule F is where you would report contributions the farm business made for common law employees, but not contributions for the farm owner.

[Jakyasar]

Paul, thank you, looks similar to schedule c.

Never dealt with a farmer client  before.

[John Feldt ERPA CPC QPA]

Just be careful that it’s earned income.  For example, my understanding is that when a cattle farmer sells cattle, that is usually a capital gain, not subject to SE tax, so not earned income. Getting their CPA involved is a good recommendation.

[Jakyasar]

Good point, thank you

[Dare Johnson]

As long as you use Line 34 of Sch F you will be ok.  Cattle that is purchased and later sold is reported on Form 4797 and not subject to SE.

Since farming is a capital intensive business, it is important to coordinate with the CPA or you will do all of the work to later learn he has a loss from depreciation deductions.