OMB No.

1545-0074
SCHEDULE F Profit or Loss From Farming
(Form 1040)
Department of the Treasury
© Attach to Form 1040, Form 1040NR, Form 1041, Form 1065, or Form 1065-B. 2006
Attachment
Internal Revenue Service (99) © See Instructions for Schedule F (Form 1040). Sequence No. 14
Name of proprietor Social security number (SSN)

A Principal product. Describe in one or two words your principal crop or activity for the current tax year. B Enter code from Part IV
©
C Accounting method: (1) Cash (2) Accrual D Employer ID number (EIN), if any

E Did you “materially participate” in the operation of this business during 2006? If “No,” see page F-2 for limit on passive losses. Yes No

Part I Farm Income—Cash Method. Complete Parts I and II (Accrual method. Complete Parts II and III, and Part I, line 11.)
Do not include sales of livestock held for draft, breeding, sport, or dairy purposes. Report these sales on Form 4797.
1 Sales of livestock and other items you bought for resale 1
2 Cost or other basis of livestock and other items reported on line 1 2
3 Subtract line 2 from line 1 3
4 Sales of livestock, produce, grains, and other products you raised 4
5a Cooperative distributions (Form(s) 1099-PATR) 5a 5b Taxable amount 5b
6a Agricultural program payments (see page F-3) 6a 6b Taxable amount 6b
7 Commodity Credit Corporation (CCC) loans (see page F-3):
a CCC loans reported under election 7a
b CCC loans forfeited 7b 7c Taxable amount 7c
8 Crop insurance proceeds and federal crop disaster payments (see page F-3):
a Amount received in 2006 8a 8b Taxable amount 8b
c If election to defer to 2007 is attached, check here © 8d Amount deferred from 2005 8d
9 Custom hire (machine work) income 9
10 Other income, including federal and state gasoline or fuel tax credit or refund (see page F-3) 10
11 Gross income. Add amounts in the right column for lines 3 through 10. If you use the accrual method, enter
the amount from Part III, line 51 © 11
Part II Farm Expenses—Cash and Accrual Method.
Do not include personal or living expenses such as taxes, insurance, or repairs on your home.
12 Car and truck expenses (see page 25 Pension and profit-sharing
F-4). Also attach Form 4562 12 plans 25
13 Chemicals 13 26 Rent or lease (see page F-5):
14 Conservation expenses (see a Vehicles, machinery, and
page F-4) 14 equipment 26a
15 Custom hire (machine work) 15 b Other (land, animals, etc.) 26b
27 Repairs and maintenance 27
16 Depreciation and section 179
expense deduction not claimed 28 Seeds and plants 28
elsewhere (see page F-4) 16 29 Storage and warehousing 29
17 Employee benefit programs other 30 Supplies 30
than on line 25 17 31 Taxes 31
18 Feed 18 32 Utilities 32
19 Fertilizers and lime 19 33 Veterinary, breeding, and medicine 33
20 Freight and trucking 20 34 Other expenses (specify):
21 Gasoline, fuel, and oil 21 a 34a
22 Insurance (other than health) 22 b 34b
23 Interest: c 34c
a Mortgage (paid to banks, etc.) 23a d 34d
b Other 23b e 34e
24 Labor hired (less employment credits) 24 f 34f
35 Total expenses. Add lines 12 through 34f. If line 34f is negative, see instructions © 35

%
36 Net farm profit or (loss). Subtract line 35 from line 11.
● If a profit, enter the profit on Form 1040, line 18, and also on Schedule SE, line 1. 36
If you file Form 1040NR, enter the profit on Form 1040NR, line 19.
● If a loss, you must go to line 37. Estates, trusts, and partnerships, see page F-6.

%
37 If you have a loss, you must check the box that describes your investment in this activity (see page F-6).
● If you checked 37a, enter the loss on Form 1040, line 18, and also on Schedule SE, line 1. 37a All investment is at risk.
If you file Form 1040NR, enter the loss on Form 1040NR, line 19. 37b Some investment is not at risk.
● If you checked 37b, you must attach Form 6198. Your loss may be limited.

For Paperwork Reduction Act Notice, see page F-7 of the instructions. Cat. No. 11346H Schedule F (Form 1040) 2006
Schedule F (Form 1040) 2006 Page 2
Part III Farm Income—Accrual Method (see page F-7).
Do not include sales of livestock held for draft, breeding, sport, or dairy purposes. Report these sales on Form 4797
and do not include this livestock on line 46 below.

38 Sales of livestock, produce, grains, and other products 38

39a Cooperative distributions (Form(s) 1099-PATR) 39a 39b Taxable amount 39b

40a Agricultural program payments 40a 40b Taxable amount 40b

41 Commodity Credit Corporation (CCC) loans:

a CCC loans reported under election 41a

b CCC loans forfeited 41b 41c Taxable amount 41c

42 Crop insurance proceeds 42

43 Custom hire (machine work) income 43

44 Other income, including federal and state gasoline or fuel tax credit or refund 44

45 Add amounts in the right column for lines 38 through 44 45

46 Inventory of livestock, produce, grains, and other products at beginning of
the year 46
47 Cost of livestock, produce, grains, and other products purchased during
the year 47

48 Add lines 46 and 47 48

49 Inventory of livestock, produce, grains, and other products at end of year 49

50 Cost of livestock, produce, grains, and other products sold. Subtract line 49 from line 48* 50

51 Gross income. Subtract line 50 from line 45. Enter the result here and on Part I, line 11 ©
51
*If you use the unit-livestock-price method or the farm-price method of valuing inventory and the amount on line 49 is larger than the amount on
line 48, subtract line 48 from line 49. Enter the result on line 50. Add lines 45 and 50. Enter the total on line 51 and on Part I, line 11.

Part IV Principal Agricultural Activity Codes

File Schedule C (Form 1040) or Schedule C-EZ 111300 Fruit and tree nut farming
(Form 1040) instead of Schedule F if (a) your 111400 Greenhouse, nursery, and floriculture production
CAUTION
principal source of income is from providing 111900 Other crop farming
agricultural services such as soil preparation, veterinary,
farm labor, horticultural, or management for a fee or on a Animal Production
contract basis, or (b) you are engaged in the business of 112111 Beef cattle ranching and farming
breeding, raising, and caring for dogs, cats, or other pet
112112 Cattle feedlots
animals.
112120 Dairy cattle and milk production
These codes for the Principal Agricultural Activity classify 112210 Hog and pig farming
farms by their primary activity to facilitate the administration of 112300 Poultry and egg production
the Internal Revenue Code. These six-digit codes are based on
112400 Sheep and goat farming
the North American Industry Classification System (NAICS).
Select the code that best identifies your primary farming 112510 Animal aquaculture
activity and enter the six digit number on page 1, line B. 112900 Other animal production
Crop Production Forestry and Logging
111100 Oilseed and grain farming 113000 Forestry and logging (including forest nurseries
111210 Vegetable and melon farming and timber tracts)

Schedule F (Form 1040) 2006