IRS Publication 225 - Farmer's Tax Guide

AAA

DEFINITION of 'IRS Publication 225 - Farmer's Tax Guide'

A document published by the Internal Revenue Service that details how the federal government taxes farms. Whether the farm is owned by the taxpayer or the taxpayer is a tenant, that individual will be liable for taxes if the farm is operated for profit. IRS Publication 225 outlines the different accounting methods that farmers may use for running their operations and how farmers must report farm income.

INVESTOPEDIA EXPLAINS 'IRS Publication 225 - Farmer's Tax Guide'

Since farming as a business activity is significantly different from most other businesses, special rules apply. There are special rules for deducting improvement costs, depreciation of machinery and reporting of crop rents.


IRS Publication 225 is related to IRS Publication 51 (Agricultural Employer's Tax Guide).

RELATED TERMS
  1. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
  2. Physical Asset

    An item of economic, commercial or exchange value that has a ...
  3. Accounting Change

    A change in accounting principles, accounting estimates, or the ...
  4. Accounting Method

    The method by which income and expenses are reported for taxation ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Genetically Modified Food (GMF)

    Food that is produced from organisms that have had their genes ...
Related Articles
  1. An Introduction To Depreciation
    Active Trading

    An Introduction To Depreciation

  2. Inventory Valuation For Investors: FIFO ...
    Fundamental Analysis

    Inventory Valuation For Investors: FIFO ...

  3. Understanding The Cash Conversion Cycle
    Investing Basics

    Understanding The Cash Conversion Cycle

  4. A Concise History Of Changes In U.S. ...
    Taxes

    A Concise History Of Changes In U.S. ...

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center