Form Pa-40 F - Pa Schedule F - Farm Income And Expenses Page 2
Download a blank fillable Form Pa-40 F - Pa Schedule F - Farm Income And Expenses in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form Pa-40 F - Pa Schedule F - Farm Income And Expenses with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4PA-40 F (09–09)
PA Schedule F
PA DEPARTMENT OF REVENUE
Farm Income and Expenses
Specific Instructions
Line 17. Employee benefit programs other than on Line 28. You
may not deduct any payments you make for your own personal
A. Agricultural Activity Code. Enter the four-digit code that best
coverage.Line 22. Insurance. You may deduct life insurance on
describes your principal income producing activity. If your principal
source of income is from providing agricultural services such as soil
yourself or your spouse only if the farm business itself (not your spouse,
preparation, veterinary, farm labor, horticultural or management for a
other family members or other persons) is the beneficiary. The farm
fee or on a contract basis, use the most appropriate federal Principal
business must use the insurance proceeds to continue its operations. If
Agricultural Activity Codes from Part IV of Federal Schedule F shown on
deducting insurance premiums, proceeds received are business income
side 2 of the PA Schedule F.
on Line 11 of Part I.
B. Principal Product. Describe in one or two words your principal crop
Line 23. Labor hired. Do not reduce your wage expense for any feder-
or output for the current year.
al credits you claim. Add back any wage expenses you excluded to claim
Disposition of Payments-In-Kind Commodities.
a federal credit. Do not deduct the costs of your own participation.
If you disposed of commodities received under the payments-in-kind
Line 27. Other interest. Do not deduct personal interest. If you
program, fill in the oval for the description(s) that apply.
personally borrow money to acquire a farm or farm interest or to
Enter your federal Employer Identification Number (FEIN). If you do not
improve your farm, you may not deduct the interest on any PA schedule
have an FEIN, leave this space blank.
or tax return. If the farm business itself incurs debt, it may deduct the
Enter your PA Sales Tax License Number if you have one, or leave this
interest expense.
space blank.
Line 34. Taxes. You may deduct tax expenses other than taxes based
Part I. Farm Income – Cash Method – Complete Parts I and II.
on income. You may not deduct taxes based on net income, federal
Line 5a. and 5b. On Line 5a, show your total distributions from
income taxes and one-half of the self-employment taxes that the IRS
cooperatives,
including
patronage
dividends,
nonpatronage
allows. You may not deduct taxes paid to other states or foreign
distributions,
per-unit
retain
allocations
and
redemption
of
countries based on income. You may not deduct estate taxes and
nonqualified notices and per-unit allocations.
inheritance, legacy, succession and gift taxes. Assessments for
Show patronage dividends (distributions) received in cash and the dollar
betterments and improvements are not allowable.
amount of qualified written notices of allocation. If you received proper-
ty as patronage dividends, report the fair market value of the property
Line 37. Other expenses. You may deduct any other cost of operations
as income.
that are ordinary, necessary, reasonable and current expenses of your
farm business.
On Line 5b, enter patronage dividends from buying personal or family
items, capital assets or depreciable assets.
• You may deduct 100 percent of the sales tax paid on a depreciable
asset. However, on disposition, your PA basis and federal basis for that
Line 11. Other Income. Enter gross proceeds you may have to report
elsewhere on your federal tax return. Include the income from the sale
asset will differ.
of business assets you reinvested and used to acquire similar business
• You may deduct charitable contributions made from your farm
assets. Also include the gain or loss on replacing business property
account and acknowledged publicly by the recipient. Personal
(including land or buildings used by the facility in the operation of a farm)
charitable contributions are not allowable.
and interest and dividend income from investments that generated
working capital. Include other income as described for Line 10 of Federal
• You may use the capitalization rules established by your industry,
Schedule F. PA PIT law and regulations do not limit depreciation when
under its generally accepted accounting principles and practices. Once
business property use (or the inclusion amount on leased property
elected, you must consistently use this method.
adjustment) falls below 50 percent. You may deduct the allowable
• You may deduct 100 percent of expenses for removing barriers to
business depreciation as described below on such property. Do not report
individuals with disabilities and the elderly. You may not take the
"depreciation recapture" for PA Personal Income Tax purposes.
federal credit on your PA return.
Part II. Farm Deductions – Cash and Accrual Method.
Include current expenses that are ordinary, necessary and reasonable for
• You may deduct home office expenses. Pennsylvania generally follows
producing farming income. Do not include personal or living expenses.
the federal rules for a home office. Itemize any other expenses that
PA law does not impose dollar or percentage limitations on allowable
are allowable under GAAP or FASB rules but are not allowable or
expenses. You may always deduct 100 percent of the PA allowable farm
limited under federal rules.
expenses that you incurred during the taxable year.
Line 39. Enter expenses you incurred that qualified you to take a PA
Line 16a. Regular Depreciation. You may use any depreciation
Employment Incentive Payments Tax Credit, PA Job Creation Tax Credit
method permissable under accepted accounting principles and practices
and/or the PA Research and Development Tax Credit. You cannot take
as long as you consistently apply the method.
these expenses and also receive the credit on your PA-40.
NOTE: For each asset, you must also report straight-line depreciation,
unless not using an optional accelerated depreciation method. You need
Line 45. Other Income. Enter transactions you may have to report
straight-line depreciation to take advantage of Pennsylvania’s Tax Benefit
elsewhere on your federal tax return, such as the sale of business assets,
Rule when you sell the asset.
gain or loss on replacing business property (other than land or buildings)
You must use the straight-line depreciation method if your PA basis and
and income from short-term investments to generate working capital.
federal a basis for an asset differ.
Include other income as described for Line 44 of Federal Schedule F.
However, PA laws and regulations do not limit depreciation as described
Line 16b. Section 179 expense. Current expensing is limited to the
above when farming property use (or the inclusion amount on leased
expensing allowed at the time you placed the asset into service, or the
property adjustment) falls below 50 percent. Deduct the allowable
expensing in effect under the IRC of 1986 as amended Jan. 1, 1997.
Pennsylvania follows the federal definitions for listed property.
business depreciation on such property.
NEXT PAGE
PAGE 2
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial