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. Master Notes

    Master notes are short-term debt instruments issued by the Federal ...
  2. Content Farm

    Content farming has been likened to the “fast food” of the internet ...
  3. Agricultural Credit

    Agricultural Credit is any of credit vehicle used to finance ...
  4. Farm Team

    A baseball reference applied to businesses that train employees ...
  5. Crop Method

    Crop method is a special accounting method available to farmers ...
  6. IRS Publication 1

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

    Montana Will Build $251 Million Cryptocurrency Mining Farm

    Power Block Coin plans to launch a cryptocurrency mining farm outside of Butte, Montana.
  2. Investing

    Trump Team Delays Fair Practice Rules for Farmers

    The rules would ease the burden of proof small farmers face when suing meat processing giants.
  3. Investing

    There Are More Ways to Invest in Land Than You Think

    You don't have to have a huge amount of capital to invest in land. You have many other options, including land-related ETFs and ETNs.
  4. Taxes

    IRS Asset Seizures: Could It Happen To You?

    If you can't pay your taxes, know that the IRS has many avenues for collecting what you owe.
  5. Taxes

    20 Tax Changes You Need To Know About

    Don't miss out on the tax changes. Here's a list that you need to know about.
  6. Taxes

    Start Over With The IRS

    If you're struggling to pay back taxes, try a fresh start with the IRS. They really can help.
  7. Taxes

    Form 9465: Don't Pay Your Back Taxes Without It

    This form can lighten your tax load if you owe Uncle Sam. And you can often apply online.
  8. Taxes

    Tax Credits And Deductions For Parents

    Your children can help you save on your taxes with these credits and deductions.
  9. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  10. Tech

    What Are the 5 Hottest Emerging Industries in 2016?

    Discover five of the hottest industries among technology, construction and agribusiness sectors poised for tremendous growth in 2016.
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's the difference between a tax rate and a tax bracket?

    These two terms are often incorrectly used interchangeably. Find out the difference between your tax rate and your tax bracket. ... Read Answer >>
  3. What is the difference between a state income tax and a federal income tax?

    Learn the difference between state income tax and federal income tax based on tax rates, deductions, tax credits and taxable ... Read Answer >>
Hot Definitions
  1. Investment Advisor

    An investment advisor is any person or group that makes investment recommendations or conducts securities analysis in return ...
  2. Gross Margin

    A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. ...
  3. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  4. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  5. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  6. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
Trading Center