The Hopefull family receive an inheritance which is the event that allows them to acquire a small farm and begin to operate and develop a high-value and added-value farming operation. Several income tax situations are illustrated that commonly may impact a tax return of a young family. The case study facts regarding four enterprises provides for an interesting outcome for this first year of farming.
The information on these forms and explanations is not from any actual farming operation. However, this sample return uses actual 2011 Income Tax forms to show you how to prepare your income tax return.
|Explanations||Forms||Name of Form|
|Form 1040||Form 1040||U.S. Individual Income Tax Return|
|Schedule A||Schedule A||Itemized Deductions|
|Schedule C||Schedule C||Profit or Loss From Business|
|Schedule F||Schedule F||Profit or Loss From Farming|
|Schedule SE||Schedule SE||Self-Employment Tax|
|Form 2441||Form 2441||Child and Dependent Care Expenses|
|Form 8889||Form 8889
||Health Savings Account (HSA)|
|Form 4562 for Schedule C
||Form 4562 for Schedule C||Depreciation and Amortization|
|Form 4562 for Schedule F||Form 4562 for Schedule F||Depreciation and Amortization|