IRS Publication 225 - Farmer's Tax Guide

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.

BREAKING DOWN '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. Investment Farm

    An agricultural business operation that is purchased and operated ...
  2. Farm Income

    Farm income refers to profits and losses incurred through the ...
  3. Farm Price Index - FPI

    An index that monitors the prices received by farmers for sales ...
  4. IRS Publication 51

    A document published by the Internal Revenue Service that provides ...
  5. Banks For Cooperatives

    Established by the Farm Credit Act of 1933, these regional, privately-owned ...
  6. IRS Publication 1

    A document published by the Internal Revenue Service that identifies ...
Related Articles
  1. Investing

    Smart Farming Technology Storms Silicon Valley

    Silicon Valley may be known for growing tech startups, but now the iconic region is welcoming an entirely new breed of residents, startups focusing on smart farming.
  2. Economics

    How To Invest In Farming Without Owning a Farm

    Investors have a number of ways to get exposure to the agriculture and farming sector besides actually having to buy a farm.
  3. Investing News

    Technology: Increasing Indoor Farming's Efficiency

    Indoor farming has gone high-tech. An increasing number of investors are now sitting up and taking notice.
  4. Investing

    Warren Buffett and the Mania of Mr. Market

    The stock market, or Mr. Market as conceptualized by Warren Buffett and Benjamin Graham, is an erratic, moody individual. Discover how to profit from his mania.
  5. Investing

    Three Agriculture Startups Disrupting Monsanto

    Even as technology startups have disrupted other industries, agriculture has remained immune to its effect. But that is about to change.
  6. Taxes

    What's IRS Form 1040 For?

    Most U.S. taxpayers will be familiar with the 1040. By the end of filling it out, you'll know how much tax you owe, or what your refund is.
  7. Taxes

    The Truth About IRS Tax Settlement Firms

    These companies claim that they can reduce or even eliminate what you owe to the IRS. Find out the facts behind this alluring fiction.
  8. Investing News

    Farmers Markets—Gaining Ground in Grocery Sector

    Farmers markets have gained a solid foothold in the grocery sector, but it seems that large retailers will retain the lion's share of the industry.
  9. Taxes

    How The IRS Catches Tax Cheats & Liars

    When civil and criminal penalties don't deter people from skipping out on their taxes, the IRS has other tools it can use.
  10. Taxes

    Retirees: Beware of These 6 IRS Red Flags

    Tax audits are stressful and can result in expensive fines. Here are six things to know about when it comes to sidestepping IRS scrutiny.
RELATED FAQS
  1. When do I need to file an IRS Schedule F form?

    If you are a farmer, your farming business may require you to file a Schedule F with the IRS. Read Answer >>
  2. What is the point of agricultural subsidies?

    Read about the historical origins of agricultural subsidies, and find out why the government spends hundreds of billions ... Read Answer >>
  3. Can the IRS take your house?

    Understand why a person would have his home seized by the IRS and what he can do to avoid it. Learn about the seizure process ... Read Answer >>
  4. Are IRS penalties tax deductible?

    Learn about penalties assessed by the U.S. Internal Revenue Service and how the IRS does not taxpayers to deduct them on ... Read Answer >>
  5. Can the IRS audit you after a refund?

    Learn how the U.S. Internal Revenue Service (IRS) can conduct a tax audit even after a taxpayer was issued a tax refund in ... Read Answer >>
  6. Are IRS audits random?

    Learn about how the U.S. Internal Revenue Service (IRS) conducts its tax audits based on random selection, document matching ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center