EA Exam Prep Part 2: Farming (Currently Unavailable)

Author: Eva Rosenberg, Susan Holtgrefe

This is the tenth class of the EA Exam Prep Part 2 series. In this TaxMama® created course, Susan plants the seeds of knowledge about farming. Discover why it is important to distinguish between farming as a business and farming as a hobby. Cultivate your knowledge of the various farming areas, such as livestock, racehorses, marijuana, timber, and more. Learn about filing requirements, farm employees, and other areas.

Publication Date: August 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about income tax preparation and more. Excellent training for staff working in tax offices, accounting practices, and corporate settings, as well as independent bookkeepers. This course provides an in-depth look at farming . It is especially helpful to those with no hands-on experience preparing tax returns and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• IRS definition of farming
• Filing requirements
• Schedule F
• Limitations of Schedule F
• Schedule E
• Form 4797
• Form 4835
• Hobby loss rules
• Farm income
• Gross receipts test for farmers
• The crop method of accounting
• Government payments and subsidies to farmers
• Cooperative (Co-op) dividends
• Cancellation of debt
• Commodity Credit Corporation (CCC) loans
• Farm rental
• Taxable and nontaxable disaster payments
• Farm income averaging
• Elected farm income
• Crop sharing
• Special issues relating to timber
• Uniform Capitalization (UNICAP) rules
• Farm inventory
• Farm assets, including livestock
• Section 1245 property
• Depreciation of farming assets
• Unique farming issues
• The Tax Cuts and Jobs Act
• Prepaid supplies
• Vehicle expenses
• Estimated tax payments
• Penalties
• Self-employment tax
• Non-farm optional method
• Employment taxes
• Hiring issues
• Form I-9
• Family employees
• Crew bosses/leaders
• Seasonal laborers

Learning Objectives

• Identify filing requirements of farming
• Identify unique income tax aspects of farming
• Recognize how to determine farming inventory and expenses
• Identify farming income and various forms of payments to farmers
• Differentiate between hobbies and farming as a profession
• Describe Grasp income averaging
• Identify and complete various farming tax forms
• Identify the intricacies of farmers as employers

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None