You don't have to include all of your taxable income from farming or fishing on line 2a. Your elected farm income is the amount of your taxable income from farming or fishing that you elect to include on line 2a. You should find your income, gains, losses, and deductions from farming or fishing reported on different tax forms, such as:Ģ023 Form 1040 or 1040-SR, or Form 1040-NR, line 1a, income from wages and other compensation you received (a) as a shareholder in an S corporation engaged in a farming or fishing business, or (b) as a crew member on a vessel engaged in a fishing business (but see Fishing business, earlier) Ģ023 Schedule 1 (Form 1040), line 15, deductible part of self-employment tax, but only to the extent that deduction is attributable to your farming or fishing business Ģ023 Form 1040, 1040-SR, or 1040-NR, line 15, CCF reduction, except to the extent that any earnings (without regard to the carryback of any net operating or net capital loss) from the operation of agreement vessels in the fisheries of the United States or in the foreign or domestic commerce of the United States aren't attributable to your fishing business įorm 8903, Domestic Production Activities Deduction, but only to the extent that deduction is attributable to your farming or fishing business and A sale or other disposition within 1 year of the cessation is presumed to be within a reasonable time.Įlected farm income doesn't include income, gain, or loss from the sale or other disposition of land or from the sale of development rights, grazing rights, and other similar rights. However, if such gain or loss is realized after cessation of the farming or fishing business, the gain or loss is treated as attributable to a farming or fishing business only if the property is sold within a reasonable time after cessation of the farming or fishing business. If you conduct both farming and fishing businesses, you must figure your elected farm income by combining income, gains, losses, and deductions attributable to your farming and fishing businesses.Įlected farm income also includes any gain or loss from the sale or other disposition of property regularly used in your farming or fishing business for a substantial period of time.

This includes all income, gains, losses, and deductions attributable to your farming or fishing business. To figure your elected farm income, first figure your taxable income from farming or fishing. The word “fish” means finfish, mollusks, crustaceans, and all other forms of marine animal and plant life other than marine mammals and birds.Ī fishing business doesn't include any scientific research activity conducted by a scientific research vessel. Leasing a fishing vessel, but only if the lease payments are (a) based on a share of the catch (or a share of the proceeds from the sale of the catch) from the lessee's use of the vessel in a fishing business (not a fixed payment), and (b) determined under a written lease entered into before the lessee begins any significant fishing activities resulting in the catch andĬompensation as a crew member on a vessel engaged in a fishing business, but only if the compensation is based on a share of the catch (or a share of the proceeds from the sale of the catch). The attempted catching, taking, or harvesting of fish Īny other activity that can reasonably be expected to result in the catching, taking, or harvesting of fish Īny operations at sea in support of, or in preparation for, any activity described in (1) through (3) above The catching, taking, or harvesting of fish

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