Business and farm income (attach U 2025

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In the context of self-employment, gross income is the total revenue generated by the business before any business expenses are deducted. It is important to note that gross income is not the same as net income, which is calculated by subtracting business expenses from gross income.
The entire amount a farmer receives, including money and the fair market value of any property or services, is reported on Schedule F, Profit or Loss From Farming. Bartering is another income source for farmers.
The key to determining if your farm qualifies for the Qualified Business Income Deduction (QBID) is your farm being a business. In other words, you farm to make a profit and not just as a hobby. If so, you may be entitled to the QBI deduction of up to 20 percent, subject to various limitations.
Individuals must pay self-employment tax on income derived from the trade or business of farming.
Gross cash farm income (GCFI) is annual income before expenses and includes cash receipts from the sale of crops and animal/animal products, farm-related income, and Government farm program payments.
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Other Income Not Subject to Self Employment Tax Occasional sources of income, such as a one-time transaction, do not count as trade or business income under the rules of the IRS, as the activity does not occur regularly or frequently. In addition, there is no effort to continue the activity on a consistent basis.

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