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Publication 225 (2025) 95

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96 Publication 225 (2025)

To help us develop a more useful index, please let us know if you have ideas for index entries. Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

Debt :

Abandonment 59 Accounting method :

Canceled 16, 35, 59 Nonbusiness bad 54 Nonrecourse 58 Qualified farm 17 Recourse 58 Depletion 49 Depreciation 44

Accrual 7 Cash 6 Change in 9 Crop 9 Farm inventory 8 Accounting periods 6 Accrual method of accounting 7 Additional Medicare Tax

Canceled debt 16 Capital assets 53 Capital expenses 26 Car expenses 25 Cash method of accounting 6 Casualties and thefts :

Adjustments to basis 71 Casualty, defined 69 Disaster area losses 75 Leased property 72 Livestock 69, 70 Reimbursement 71 Reporting gains and losses 77 Theft, defined 69 Certification program for

Nontaxable 35 Partially nontaxable 36 Taxable 35 Like-kind 52 Nontaxable 52 Excise taxes :

Credit 90 Diesel fuel 89 Farming purposes 89 Home use of fuels 90 Off-highway uses 90 Refund 91

property 27 Personal-use property 70 Social security coverage 85 Farm :

withholding 87 Adjusted basis of assets 34 Agricultural activity codes,

Fair market value (FMV) 67 Family member :

Schedule F 3 Agricultural program

payments 12 Agricultural structure,

ADS election 48 Conservation assets 30 Deduction 39 Incorrect amount deducted 41 Limit for automobiles 42 Listed property 48 Raised livestock 39 Recapture 48, 60, 62 When to file 41 Depreciation allowable 40 Depreciation allowed 40 Depreciation, Special

depreciation allowance 2 Direct deposit 2 Disaster area losses 75 Disaster payments 13 Disaster relief grants 76 Disaster relief payments 76 Disposition of installment

Business expenses 8 Like-kind exchange 53 Loss on sale or exchange of

defined 41 Alternative Depreciation System

professional employer organizations (PEOs). 3, 83 Change in accounting method 9 Chickens, purchased 26 Christmas trees 27, 56 Club dues 28 Commodity :

Business expenses 20 Business, defined 30 Defined 30, 89 Income averaging 19 Rental 30 Sale of 57 Farmer 79 Federal unemployment tax

(ADS) 46, 48 Amortization :

Going into business 50 Reforestation expenses 51 Section 197 intangibles 51 Assessments :

Wages 86 Commodity Credit Corporation

By conservation district 31 Depreciable property 31 Assistance ( See Tax help) Automobiles, depreciation 42

(CCC) : Loans 12 Market gain 12 Community property 79, 80 Computer, software 39 Condemnation 68, 73 Conservation :

Cost-sharing exclusion 30 District assessments 31 Expenses 30 Plans 30 Conservation Reserve

obligation 65 Dispositions 32, 59 Drainage tile 30 Dyed diesel fuel 89 Dyed kerosene 89

Bankruptcy 17 Barter income 18 Basis :

(FUTA) 88 Fertilizer 15, 23 Figuring installment sale income :

Adjusted basis 64 Adjusted basis and installment

sale income (gain on sale) 64 Adjusted basis for installment

Involuntary conversion 36 Like-kind exchange 36 Partner’s basis 38 Replacement property 74 Shareholder’s basis 38 Basis of assets :

Easement 18, 35 East Palestine disaster relief

Program 80 Conservation Reserve Program

payments 2, 68, 76 Election :

Business start-up costs 50 Reforestation costs 51 Crop method 26 Cutting of timber 56 Deducting conservation

deduction 44 Electronic payments 3 Embryo transplants 33 Employer identification

ADS depreciation 46, 48 Amortization:

sale purposes 64 Amount to report as installment

sale income 64 Cancellation 64 Contract price 64 Depreciation recapture 64 Disposition of installment

Adjusted basis 34 Allocating to several assets 33 Changed to business use 35 Constructing assets 33 Cost 33 Decreases 34 Depreciation 47 Exchanges:

(CRP) 13 Constructing assets 33 Constructive receipt of income 7 Contamination 74 Converted wetland 56 Cooperatives, income from 15 Cost-sharing exclusion 13 Credits :

Employment 22 Fuel tax 19, 90 Social security and Medicare 78 Social security coverage 78 State unemployment tax 88 Crew leaders 86 Crop :

payments 15 Out of installment method 63 Postponing casualty gain 73 Postponing reporting crop

expenses 32 Not excluding cost-sharing

obligation 64 Figuring adjusted basis and

Like-kind 36 Nontaxable 35 Partially nontaxable 36 Taxable 35 Gifts 37 Increases 34 Real property 33 Received for services 35 Uniform capitalization rules 33 Below-market loans 18 Books and records 4 Breeding fees 23 Business income limit, section

Damage :

Casualties and thefts 69 Crop insurance 13 Tree seedlings 73

Gross farm income 92 Gross income 92 Penalties 93 Exchanges :

insurance proceeds 13 Section 179 expense

Destroyed 74 Insurance proceeds 13 Method of accounting 9 Shares 11 Unharvested 27, 60, 80 Cropland, highly erodible 56

expenses 31 Environmental contamination 74 Estimated tax :

number 3 Employer identification number

(EIN) 85 Endangered species recovery

gross profit percentage for installment sale purposes 64 Form 6252 64 Gross profit 64 Gross profit percentage 64 Interest income 64 Sale of depreciable property 64 Selling expenses 64 Selling price 64 Selling price reduced 64 Transfer due to death 64 Foreclosure 58 Forestation costs 27 Form :

1099-A 12, 59 1099-C 16, 59 1099-G 12, 15 1099-NEC 87 1099-PATR 15 1128 6 2210-F 93

Basis:

179 expense deduction 43 Business meals 3 Business use of home 24

Like-kind 36

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3115 9 4136 90 4562 41 4797 10, 14, 52 4835 11 5213 29 8822 3 8824 52 8849 91 940 88 943 87 982 18 I-9 85 SS-4 3, 85 SS-5 78 T (Timber) 50 W-4 85, 87 W-4V 12, 13 W-7 78 Fuel tax credit or refund 19, 90

Items included 8 Methods of valuation 8 Involuntary conversions 48, 68 Irrigation :

Inventory ( See More information) Revoking the election ( See More

Weather-related sales 10, 73 Loans 12, 26 Losses :

At-risk limits 28 Casualty 68 Disaster areas 75 Farming 69 Growing crops 27 Hobby farming 28 Livestock 55, 73 Nondeductible 27 Theft 68 Lost income payments 80 Lost property 69

property 66 Payments received 66 Penalties :

Advance premiums 23 Extends useful life 7 Farm supplies 21 Livestock feed 21 Prizes 19 Produce 10 Property :

Third-party note 66 Trading property for like-kind

information) Sale at a loss 63 When to elect out 63 Installment payment of tax on

sale of qualified farmland 3 Installment sales :

Estimated tax 93 Returns 93 Trust fund recovery 88 Per-unit retain certificates 16 Personal expenses 27 Placed in service 40, 46 Postponed tax deadlines 2, 68,

Electing out 63 Example 67 Farm, sale of 63 Installment obligation 63 Related parties 63 Unstated interest 67 Insurance 23, 24 Intangible property 51 Interest :

MACRS property :

77 Postponing casualty gain 73 Prepaid expense :

Expense 22 Inventory :

Changed to business use 35 Received for services 35 Repairs and improvements 40 Section 1231 60 Section 1245 61 Section 1250 62 Section 1252 62 Section 1255 62 Tangible personal 41 Property used as a payment :

Gains :

Section 1231 gains 68 Gains and losses :

Illegal subsidy 19 Project 73

Basis of assets 33 Capital assets, defined 53 Casualty 70, 72 Installment sales 63 Livestock 55 Long- or short-term 54 Ordinary or capital 53 Sale of farm 57 Section 1231 60 Theft 70, 72 Timber 56 General asset accounts 48 Gifts 11, 28, 37, 54 Going into business 50 Grants, disaster relief 76

At-risk 28 Business use of home 24 Capital losses 54 Conservation expenses 31, 32 Depreciation:

Labor hired 21 Landlord participation 80 Lease or purchase 24 Life tenant ( See Term interests) Like-kind exchanges 36, 52 Lime 23 Limitation on personal casualty

Involuntary conversion 48 Like-kind exchange 48 Nontaxable transfer 48 Market gain, reporting 12 Marketing quota penalties 25 Material participation 80 Meals 25 Membership fees 28 Methods of accounting 6 Modified ACRS (MACRS) :

ADS election 48 Conventions 47 Depreciation methods 47 Exchange 48 Figuring the deduction 48 Involuntary conversion 48 Nontaxable transfer 48 Property classes 46 Recovery periods 47

Examples 66 Exception 66 Publications ( See Tax help)

and theft losses 2, 68 Limits :

Exploited Children 4 Net operating losses :

Qualified disaster losses 2, 68,

National Center for Missing &

76 Qualified disaster relief

Health insurance deduction 24 Highway use tax 23 Holding period 54, 55 Home 68 Horticultural structure 42

Business-use 49 Excluded farm debt 18 Farm losses 28 Loss of personal-use

property 72 Not-for-profit farming 28 Passive activity 28 Percentage depletion 50 Prepaid farm supplies 21 Reforestation costs 51 Section 179 expense deduction:

Recapture :

payments 76 Qualified farm debt 17 Qualified joint venture 79 Qualified small business payroll

payments 2, 68, 76

Net operating loss (NOL) 72 New hire reporting 85 Noncapital asset 54 Nontaxable exchanges 52 Nontaxable transfer of MACRS

Organizational costs 26 Overtime Compensation 3

Partners, limited 79 Partners, retired 80 Partners, spouses 79 Partnership 79 Passenger automobile 49 Pasture income 11, 12 Patronage dividends 15 Payments considered received :

Bond 66 Buyer assumes mortgage 66 Buyer assumes other debts 66 Buyer pays seller’s expenses 66 Buyer’s note 66 Debt not payable on demand 66 Mortgage less than basis 66 Mortgage more than basis 66 Property used as a payment 66 Sale to a related person 66

Amortization 61 Basis reductions 17 Certain depreciation 19 Cost-sharing payments 14 Depreciation 48, 60 Section 1245 property 61 Section 1250 property 62 Section 179 expense

property 48 Not-for-profit farming 28

tax credit for increasing research activities 3, 83 Qualified wildfire relief

Casualties and thefts 35, 69, 71 Deduction taken 19 Expenses 20

Illegal irrigation subsidy 19 Important dates 84 Improvements 13 Income :

Accounting for 6 Accrual method of accounting 7 Canceled debt excluded 16 From farming 9, 32, 92 Gross 92 Not-for-profit farming 28 Pasture 11, 12 Schedule F 9 Withholding of tax 87 Income averaging ( See Farm:

Income averaging) Incorrect amount of depreciation

deducted 41 Individual taxpayer identification

Automobile 42 Business income 43 Dollar 42 Time to keep records 6 Listed property :

Casualty and theft losses 69 Crop shares 11 Depreciation 39 Diseased 73 Feed assistance 13 Immature 40 Losses 27, 55 Purchased 56 Raised 56 Sale of 10, 55 Unit-livestock-price, inventory

property 61 Reforestation costs 27, 51 Refund :

Deduction taken 19 Fuel tax 19, 91 Reimbursements :

Defined 49 Passenger automobile 49 Rules 48 Livestock 60

deduction 44 Section 179 GO Zone

property 44 Special depreciation

allowance 45 Recordkeeping 4, 25 Records on depreciable

number (ITIN) 78 Inherited property 37 Insolvency 17 Installment method :

Electing out of the installment

valuation 8 Used in a farm business 55

method 63

98 Publication 225 (2025)

Feed assistance 13 Real estate taxes 33 Reforestation expenses 51 To employees 25 Related parties 63 Related persons 8, 27, 36, 53, 73,

Qualifying property 41 Recapture 44 Self-employed health

deduction 80 Self-employment (SE) tax :

Software, computer 39 Soil :

insurance 24 Self-employed health insurance

Conservation 30 Contamination 74 Special depreciation

allowance 2 How to elect not to claim 45 Recapture 45 Standard mileage rate 25 Start-up costs for businesses 26

Telephone expense 25 Tenant house expenses 25 Term interests 39 Theft losses 68 Third-party note 67 Timber 27, 50, 56 Trade-in 36 Travel expenses 25 Truck expenses 25 Trust fund recovery penalty 88

Uniform capitalization rules :

Basis of assets 33

74 Rental income 11 Rented property,

Tangible personal property 41 Tax help 94 Tax preparation fees 26 Tax shelter :

improvements 41 Repairs 22 Repairs and improvements 40 Repayment of income 7 Replacement :

earnings 80 Optional method 81 Regular method 81 Rental income 80 Reporting 82 Self-employment tax rate 78 Share farming 79 Who must pay 78 Selling price reduced 65 Settlement costs (fees) 33 Social security and Medicare :

Community property 80 Deduction 82 How to pay 78 Landlord participation 80 Material participation 80 Maximum net earnings 2, 77 Methods for figuring net

tax 86

Period 74 Property 74 Repossessions 58 Research and experimental

At-risk limits 28 Defined 8 Tax-free exchanges 52 Taxes :

expenses 3 Right-of-way income 18

Wages and salaries 80 Water conservation 30 Water well 30, 47 Weather-related sales,

Sale of home 58 Section 179 expense 2 Section 179 expense

deduction 41 How to elect 44 Listed property 48

livestock 10, 73 Withholding :

Credits of coverage 78 Withholding of tax 86 Social security number (SSN) 78

Credits and Refunds 88 Federal use 23 General 23 Self-employment 77 State and federal 23 State and local general sales 23 Withholding 86, 87

Income tax 87 Social security and Medicare

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