Question

Consequences of filing Schedule C when you are farming and selling purchased product

Forum|Forum|2 years ago
March 29, 2024
1 reply
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If my am a Floriculture Farmer, planting seed and selling my farm floral products along with purchased floral products and my deprecation consist of:

1. Building 2. Irrigation system 1 3. Irrigation System 2 4. Truck 5. Land Improvements 6. Cooler

2. Schedule C Previous Deprecation # 2 15 HY 150DB, #3 7 HY200DB, #5 15HY 150DB, #6 5 HY 200DB

1? Can I switch to Schedule F and retain the previous deprecation schedule?

2? Are legal consequence if I continue to file the Cx Return on Schedule C?

DaveF1006

No, there are no legal consequences if you continue to use a Schedule C to report sales from your floral products. Schedule F is especially designed to report income and expenses generally specific to farming but since you retail your floral products, Schedule C will work just fine.

It may be beneficial to switch to Schedule F because of some farm credits may be beneficial to you that are not available on a Schedule C. You may continue the depreciation schedule as is and the prior depreciation can be inputted from the depreciation Schedule form your 2022 return.

[Edited 04/01/24|7:15 am PST]

@atataylor

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