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Rural Tax Education

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2010

Tax purposes

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Farm, Farming And Who’S A Farmer For Tax Purposes, Guido Van Der Hoeven Aug 2010

Farm, Farming And Who’S A Farmer For Tax Purposes, Guido Van Der Hoeven

Rural Tax Education

Meeting the qualifications of farming and being a farmer under the Internal Revenue Code (IRC) allows for special benefits; however, not all agricultural producers meet these qualifications even if they are producing agricultural products, which is why it is vitally important for operators of farms and their tax professionals to understand the IRS tax definitions of farm, farming and farmer. One of the benefits of being classified as a farmer is the exclusion of certain receipts from income as in the case of conservation payments as allowed under IRC Section 175.

Operators of farming businesses may associate the term farmer …