Reminders

Farmers and ranchers affected by drought may be eligible for extension of tax relief. Farmers and ranchers forced to sell certain livestock because of drought conditions may have more time to replace their livestock and defer tax on any gains from the forced sales. See IRS extends relief to farmers and ranchers in 49 states and other areas .

Form 1040-SS, Part III, has been replaced. Schedule F (Form 1040) is now filed with Form 1040-SS, if applicable. For additional information, see the Instructions for Form 1040-SS.

Excess business loss limitation rules. The limitation on excess business losses for noncorporate taxpayers is applicable for 2025. See Form 461, Limitation on Business Losses, and its instructions for details on the amount of the excess business loss limitation.

Form 7205, Energy Efficient Commercial Buildings Deduc- tion. This form and its separate instructions are used to claim the section 179D deduction for qualifying energy efficient commercial building expenses.

Deduction for qualified business income. For tax years beginning after 2017, you may be entitled to a deduction of up to 20% of your qualified business income from your qualified trade or business, plus 20% of the aggregate amount of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income. The deduction is subject to various limitations, such as limitations based on your type of trade or business, your taxable income, the amount of W-2 wages paid with respect to the trade or business, and the unadjusted basis immediately after acquisition of qualified property held by the trade or business.

Form 172. Form 172, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts, is a new form for figuring net operating losses (NOLs). This form replaces Schedules A and B (Form 1045).

Net operating loss (NOL). An NOL can no longer be carried back, unless the NOL is a farming loss. If you have an NOL attributable to farming, you must carry it back to each of the 2 tax years preceding the tax year of the loss, unless you elect to forgo the carryback. Farming businesses can elect to forgo the carryback and carry forward the farm NOL to a later year. For additional information on NOLs for individuals, estates and

Special rules also exist for patrons of specified agricultural or horticultural cooperatives, including the following.

• Distributions from a cooperative that are included in a patron’s qualified business income and are identified on Form 1099-PATR as qualified payments are subject to the patron reduction.

• A cooperative’s section 199A(g) deduction passed through to a patron on the Form 1099-PATR is included in the patron’s qualified business income deduction.

You will claim the deduction for qualified business income on Form 1040 or 1040-SR. This deduction can be taken in addition to the standard or itemized deductions. For more information, see the Instructions for Form 1040 and Pub. 334, Tax Guide for Small Business.

Instructions for Schedule F (Form 1040) (2025) Catalog Number 17152R Dec 10, 2025 Department of the Treasury Internal Revenue Service www.irs.gov

trusts, and corporations, see Pub. 225 and Form 172 and its instructions.

Small business taxpayers. For tax years beginning after 2017, more small business taxpayers may be eligible to use the cash method of accounting. See Small business taxpayer , later.