Farmer's Tax Guide›2025 Returns›4. Farm Business Expenses
! suspended miscellaneous itemized de
2025 Publ 225 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
CAUTION ductions, so these deductions are not
available for tax years beginning after Decem- ber 31, 2017 and before January 1, 2026.
Partnerships and S corporations. If a partnership or S corporation carries on a not-for-profit activity, these limits apply at the partnership or S corporation level. They are reflected in the individual shareholder’s or partner’s distributive shares.
More information. For more information on not-for-profit activities, see Not-for-Profit Activi- ties in chapter 9 of Pub. 334.
Although some expenses are not deductible as soil and water conservation expenses, they may be deductible as ordinary and necessary farm expenses. These expenses include interest and taxes, the cost of periodically clearing brush from productive land, other ordinary maintenance activities related to property already used in farming, repairs of completed soil or water conservation structures (such as costs for the regular removal of sediment from a drainage ditch), and expenses paid or incurred primarily to produce an agricultural crop that may only incidentally conserve soil.
You must include in income most government payments for approved conservation practices. However, you can exclude some payments you receive under certain cost-sharing conservation programs. For more information, see Agricultural Program Payments in chap- ter 3.
To get the full deduction to which you
TIP are entitled, you should maintain your
records to clearly distinguish between your ordinary and necessary farm business ex- penses and your soil and water conservation expenses or endangered species recovery ex- penses.
Topics. This chapter discusses the following.
Business of farming,
Plan certification,
Conservation expenses,
Assessment by conservation district,
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