A

Abandonment, Abandonment

Accounting method:

Accrual, Accrual Method

Cash, Cash Method

Change in, Change in Accounting Method

Crop, Crop method.

Farm inventory, Farm Inventory

Accounting periods, Accounting Periods

Accrual method of accounting, Accrual Method

Adjusted basis for installment sale, Adjusted basis for installment sale purposes.

Adjusted basis of assets, Adjusted Basis

Agricultural activity codes, Schedule F, Reminders

Agricultural program payments, Agricultural Program Payments

Agricultural structure, defined, Agricultural structure.

Alternative Depreciation System (ADS), Required use of ADS., ADS election.

Amortization:

Going into business, Going Into Business

Pollution control facilities, Pollution Control Facilities

Reforestation expenses, Reforestation Costs

Section 197 intangibles, Section 197 Intangibles

Assessments:

By conservation district, Assessment by Conservation District

Depreciable property, Assessment for Depreciable Property

Assistance (see Tax help)

Automobiles, depreciation, Additional limit for passenger automobiles.

B

Bankruptcy, Bankruptcy.

Barter income, Barter income.

Basis of assets:

Adjusted basis, Adjusted Basis

Allocating to several assets, Allocating the Basis

Changed to business use, Property changed to business or rental use.

Constructing assets, Constructing assets.

Cost, Cost Basis

Decreases, Decreases to Basis

Depreciation, What Is the Basis for Depreciation?

Exchanges:

Like-kind, Like-Kind Exchanges

Nontaxable, Nontaxable Exchanges

Partially nontaxable, Partially Nontaxable Exchanges

Taxable, Taxable Exchanges

Gifts, Property Received as a Gift

Increases, Increases to Basis

Inherited, Inherited Property

Real property, Real Property

Received for services, Property received for services.

Transfer from spouse, Property Transferred From a Spouse

Uniform capitalization rules, Uniform Capitalization Rules

Basis:

Adjusted, Adjusted basis.

Installment sale, Adjusted basis for installment sale purposes.

Involuntary conversion, Basis for depreciation.

Like-kind exchange, Basis for depreciation.

Partner's basis, Property Distributed From a Partnership or Corporation

Replacement property, Basis of replacement property.

Shareholder's basis, Property Distributed From a Partnership or Corporation

Below-market loans, Below-market loans.

Books and records, 1. Importance of Records

Breeding fees, Breeding Fees

Business income limit, section 179 deduction, Business Income Limit

Business use of home, Business Use of Your Home

C

Calendar year defined, Calendar year.

Canceled debt, Cancellation of Debt

Capital assets, Capital Assets

Capital expenses, Capital Expenses

Car expenses, Truck and Car Expenses

Cash method of accounting, Cash Method

Casualties and thefts:

Adjustments to basis, Adjustments to basis.

Casualty, defined, Casualty.

Disaster area losses, Disaster Area Losses

Leased property, Leased property.

Livestock, Livestock or produce purchased for sale., Raised draft, breeding, dairy, or sporting animals.

Reimbursement, Insurance and other reimbursements.

Reporting gains and losses, Reporting Gains and Losses

Theft, defined, Theft.

Change in accounting method, Change in Accounting Method

Chickens, purchased, Chickens, seeds, and young plants.

Christmas trees, Christmas tree cultivation., Christmas trees.

Club dues, Club dues and membership fees.

Comments on publication, Comments and suggestions.

Commodity Credit Corporation (CCC):

Loans, Commodity Credit Corporation (CCC) Loans

Market gain, Market Gain

Commodity:

Futures, Hedging (Commodity Futures)

Wages, Noncash wages.

Computer, software, Computer software.

Condemnation, 11. Casualties, Thefts, and Condemnations, Condemnation

Conservation:

Cost-sharing exclusion, Introduction

District assessments, Assessment by Conservation District

Expenses, Introduction

Incentive payments, Introduction

Plans, Conservation plan.

Reserve Program (CRP), Conservation Reserve Program (CRP)

Constructing assets, Constructing assets.

Constructive receipt of income, Constructive receipt.

Contamination, Soil or other environmental contamination.

Contract price, Contract price.

Converted wetland, Converted Wetland and Highly Erodible Cropland

Cooperatives, income from, Income From Cooperatives

Cost-sharing exclusion, Cost-Sharing Exclusion (Improvements)

Counter-cyclical payments, Direct payments and counter-cyclical payments., Payments under the Farm Security and Rural Investment Act of 2002

Credits:

Earned income (EIC), Advance Payment of Earned Income Credit

Employer-provided childcare, Credit for employer-provided childcare.

Employment, Employment Credits

Fuel tax, Fuel tax credit and refund., How To Claim a Credit or Refund, Claiming a Credit

Qualified electric vehicle, Credit for qualified electric vehicles.

Social security and Medicare, Earning credits in 2004.

Social security coverage, How to become insured under social security.

State unemployment tax, Tax rate and credit.

Crew leaders, Crew Leaders

Crop:

Destroyed, Standing crop destroyed by casualty.

Insurance proceeds, Crop Insurance and Crop Disaster Payments

Method of accounting, Crop method.

Shares, Rents (Including Crop Shares)

Unharvested, Cost of raising unharvested crops., Section 1231 transactions., Gain or loss.

Cropland, highly erodible, Converted Wetland and Highly Erodible Cropland

D

Damage:

Casualties and thefts, Casualties and Thefts

Crop insurance, Crop Insurance and Crop Disaster Payments

Tree seedlings, Tree Seedlings

Debt:

Bad, Nonbusiness bad debt.

Canceled, Cancellation of Debt, Canceled debt excluded from income., Cancellation of debt., Canceled debt.

Nonrecourse, Amount realized on a nonrecourse debt.

Qualified farm, Qualified Farm Debt

Recourse, Amount realized on a recourse debt.

Depletion, Depletion

Depreciation allowable, Basis adjustment for depreciation allowed or allowable.

Depreciation allowed, Basis adjustment for depreciation allowed or allowable.

Depreciation:

ADS election, ADS election.

Conservation assets, Depreciable conservation assets.

Deduction, Overview of Depreciation

Electric vehicles, Electric vehicles.

Incorrect amount deducted, How Do You Correct Depreciation Deductions?

Limit for automobiles, Additional limit for passenger automobiles.

Listed property, Additional Rules for Listed Property

Raised livestock, Livestock.

Recapture, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Section 1250 Property

Special depreciation allowance, Claiming the Special Depreciation Allowance

Trucks and vans, Trucks and vans.

When to file, Do You Have To File Form 4562?

Direct payments, Direct payments and counter-cyclical payments., Payments under the Farm Security and Rural Investment Act of 2002

Disaster area losses, Disaster Area Losses

Disaster payments, Crop Insurance and Crop Disaster Payments

Disaster relief grants, Disaster relief grants.

Disaster relief payments, Qualified disaster relief payments.

Dispositions, Sale or other disposal of land during 9-year period., Gain on sale of farmland., Dispositions., Introduction, Disposition of installment obligation.

E

e-file, 2005 Calendar Year

Easement, Easements and rights-of-way., Easements.

Election:

ADS depreciation, Electing ADS., ADS election.

Amortization:

Business start-up costs, Going Into Business

Pollution control facilities, Pollution Control Facilities

Reforestation costs, Reforestation Costs

Crop method, Election to use crop method.

Cutting of timber, Election to treat cutting as a sale or exchange.

Deducting conservation expenses, Choosing To Deduct

MACRS exclusion, Election To Exclude Property From MACRS

Not excluding cost-sharing payments, Choosing not to exclude payments.

Out of installment method, Electing out of the installment method.

Postponing casualty gain, Postponing Gain

Postponing reporting crop insurance proceeds, Choice to postpone reporting until the following year.

Section 179 deduction, How Do You Elect the Deduction?

Special valuation, estate, Special-use valuation method.

Electric vehicles, Electric vehicles.

Electronic:

Deposit of taxes, Reminders, Reminder

Filing, 2005 Calendar Year

Embryo transplants, Transplanted embryo.

Employer identification number, Reminders, Employer identification number (EIN).

Environmental contamination, Soil or other environmental contamination.

Exchanges:

Basis:

Like-kind, Like-Kind Exchanges

Nontaxable, Nontaxable Exchanges

Partially nontaxable, Partially Nontaxable Exchanges

Taxable, Taxable Exchanges

Like-kind, Like-Kind Exchanges

Nontaxable, Like-Kind Exchanges

Excise taxes:

Credit, Claiming a Credit

Diesel fuel, How To Buy Diesel Fuel and Kerosene Tax Free

Farming purposes, Fuels Used in Farming

Home use of fuels, Fuels Used for Household Use or Other Than as a Fuel

Off-highway uses, Fuels Used in Off-Highway Business Use

Refund, Claiming a Refund

F

Fair market value defined, Fair market value (FMV).

Fair market value, defined, Fair market value (FMV).

Family member:

Business expenses, Special rule for related persons.

Installment sale, Sale to a related person.

Like-kind exchange, Like-kind exchanges between related persons.

Loss on sale or exchange of property, Losses from sales or exchanges between related persons.

Personal-use property, Personal-use property.

Section 179 property, Property Acquired by Purchase

Social security coverage, Family Employees

Farm:

Business expenses, 4. Farm Business Expenses

Business, defined, Business of Farming

Defined, Farm defined., Farming business., Farm.

Income averaging, Income Averaging for Farmers

Rental, Farm rental.

Sale of, Sale of a Farm

Special use valuation, Special-use valuation method.

Farmer, Farmer.

Federal unemployment tax (FUTA), Federal Unemployment (FUTA) Tax

Fertilizer, Fertilizer and Lime, Fertilizer and Lime

Fiscal tax year, defined, Fiscal tax year.

Foreclosure, Foreclosure or Repossession

Form:

1099-A, Form 1099-A., Forms 1099-A and 1099-C.

1099-C, Form 1099-C., Forms 1099-A and 1099-C.

1099-G, Market Gain

1099-MISC, Reminders, Nonemployee compensation.

1099-PATR, Form 1099-PATR.

1099–C, Cancellation of Debt

1099–G, Payment to More Than One Person

3115, Change in Accounting Method

4136, Claiming a Credit

4562, Do You Have To File Form 4562?

4797, Form 4797., Recapture., Reporting the exchange.

4835, Rents (Including Crop Shares)

5213, Using the presumption later.

6252, Form 6252.

8822, Reminders

8824, Reporting the exchange.

8849, Claiming a Refund

8886, Reminders

943, Form 943.

982, Form 982

I-9, Form I-9.

SS-4, Reminders, Farm Employment

SS-5, Obtaining a social security number.

T, Form T.

W-2, Noncash wages., Form W-2.

W-4, Reminders, New hire reporting., New Form W-4 for 2005.

W-4V, Crop Insurance and Crop Disaster Payments

W-5, Advance Payment of Earned Income Credit

W-7, Obtaining an individual taxpayer identification number.

W–4V, Commodity Credit Corporation (CCC) Loans

Free tax services, 16. How To Get Tax Help

Fuel tax credit or refund, Fuel tax credit and refund., How To Claim a Credit or Refund

G

Gains and losses:

Basis of assets, Cost Basis

Capital assets, defined, Capital Assets

Casualty, How To Figure a Loss, Figuring a Gain

Installment sales, 10. Installment Sales

Livestock, Livestock

Long- or short-term, Long and Short Term

Ordinary or capital, Ordinary or Capital Gain or Loss

Sale of farm, Sale of a Farm

Section 1231, Section 1231 Gains and Losses

Theft, How To Figure a Loss, Figuring a Gain

Timber, Timber

General asset accounts, How Do You Use General Asset Accounts?

Gifts, Crop shares you give to others (gift)., Cost related to gifts., Property Received as a Gift, Gift.

Going into business, Going Into Business

Grants, disaster relief, Disaster relief grants.

Gross profit percentage, Gross profit percentage.

Gross profit, defined, Gross profit.

H

Health insurance deduction, Self-employed health insurance deduction.

Hedging, Hedging (Commodity Futures)

Help (see Tax help)

Highway use tax, Highway use tax.

Holding period, Holding period.

Horticultural structure, Horticultural structure.

I

Illegal irrigation subsidy, Illegal federal irrigation subsidy.

Improvements, Cost-Sharing Exclusion (Improvements), How Do You Treat Improvements?

Income averaging (see Farm: Income averaging)

Income:

Accounting for, Accounting Methods

Accrual method of accounting, Income

Canceled debt excluded, Cancellation of Debt

Community, Community income.

From farming, 3. Farm Income, Gross income from farming.

Not-for-profit farming, Not-for-Profit Farming

Pasture, Pasture income and rental.

Schedule F, 3. Farm Income

Withholding of tax, Federal Income Tax Withholding

Incorrect amount of depreciation deducted, How Do You Correct Depreciation Deductions?

Individual taxpayer identification number (ITIN), Obtaining an individual taxpayer identification number.

Insolvency, Insolvency.

Installment sales:, Form 6252.

Electing out, Electing out of the installment method.

Farm, sale of, Installment Sale of a Farm

Figuring income, Figuring Installment Sale Income

Reporting income, Form 6252.

Unstated interest, Unstated interest.

Insurance, Insurance, Self-employed health insurance deduction.

Intangible property, Section 197 Intangibles

Interest:

Expense, Interest

Income, Interest income.

Unstated, Unstated interest.

Inventory:

Items included, Farm Inventory

Methods of valuation, Inventory valuation methods.

Involuntary conversions, Involuntary Conversions, Property acquired in a like-kind exchange or involuntary conversion., Introduction

Irrigation:

Illegal subsidy, Illegal federal irrigation subsidy.

Project, Irrigation Project

L

Labor:

Hired, Labor Hired

Landlord participation, Landlord Participation in Farming

Lease or purchase, Lease or Purchase

Life tenant (see Term interests)

Like-kind exchanges, Like-Kind Exchanges, Like-Kind Exchanges

Lime, Fertilizer and Lime

Limits:

At-risk, At-Risk Limits

Business use of home, Deduction limit.

Capital losses, Treatment of Capital Losses

Conservation expenses, Assessment for Depreciable Property, 25% Limit on Deduction

Depreciation:

Business-use, What Is the Business-Use Requirement?

For employees, Can Employees Claim a Deduction?, Do the Passenger Automobile Limits Apply?

Excluded farm debt, Exclusion limit.

Farm losses, Losses From Operating a Farm

Loss of personal-use property, Deduction Limits on Losses of Personal-Use Property

Not-for-profit farming, Not-for-Profit Farming

Passive activity, Passive Activity Limits

Percentage depletion, Taxable income limit.

Prepaid farm supplies, Deduction limit.

Reforestation costs, Reforestation Costs

Section 179 deduction:

Automobile, Additional limit for passenger automobiles.

Business income, Business Income Limit

Dollar, Dollar Limits

SSA posting self-employment income, The Social Security Administration (SSA) time limit for posting self-employment income.

Time for deferred exchange, Deferred exchange.

Time to keep records, How Long To Keep Records

Listed property:

Defined, What Is Listed Property?

Limit on deduction for employees, Can Employees Claim a Deduction?

Passenger automobile, Passenger automobiles.

Recordkeeping, What Records Must Be Kept?

Rules, Additional Rules for Listed Property

Livestock:

Casualty and theft losses, Livestock or produce purchased for sale.

Crop shares, Crop shares you use to feed livestock.

Depreciation, Livestock.

Diseased, Diseased livestock.

Feed assistance, Feed Assistance and Payments

Immature, Immature livestock.

Losses, Loss of livestock., Livestock

Purchased, Purchased livestock.

Raised, Raised livestock.

Sale of, Sales of Farm Products, Livestock

Unit-livestock-price, inventory valuation, Unit-livestock-price method.

Used in a farm business, Livestock used in farm business.

Weather-related sales, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock.

Loans, Commodity Credit Corporation (CCC) Loans, Loan expenses.

Losses:

At-risk limits, At-Risk Limits

Casualty, 11. Casualties, Thefts, and Condemnations

Disaster areas, Disaster Area Losses

Farming, Farming Losses

Growing crops, Loss of growing plants, produce, and crops.

Hobby farming, Not-for-Profit Farming

Livestock, Livestock, Diseased livestock.

Nondeductible, Other Nondeductible Items

Theft, 11. Casualties, Thefts, and Condemnations

Lost property, Mislaid or lost property.

M

MACRS property:

Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion.

Like-kind exchange, Property acquired in a like-kind exchange or involuntary conversion.

Nontaxable transfer, Property acquired in a nontaxable transfer.

Market gain, reporting, Market Gain

Marketing quota penalties, Marketing Quota Penalties

Material participation, Landlord Participation in Farming

Meals, Meals.

Membership fees, Club dues and membership fees.

Methods of accounting, Accounting Methods

Modified ACRS (MACRS):

ADS election, ADS election.

Conventions, Which Convention Applies?

Depreciation methods, Which Depreciation Method Applies?

Exchange, Property acquired in a like-kind exchange or involuntary conversion.

Figuring the deduction, How Is the Depreciation Deduction Figured?

Involuntary conversion, Property acquired in a like-kind exchange or involuntary conversion.

Nontaxable transfer, Property acquired in a nontaxable transfer.

Percentage tables, Rules for using the tables.

Property classes, Which Property Class Applies Under GDS?

Recovery periods, Which Recovery Period Applies?

More information (see Tax help)

N

New hire reporting, New hire reporting.

Noncapital asset, Noncapital Assets

Nontaxable exchanges, Like-Kind Exchanges

Nontaxable transfer of MACRS property, Property acquired in a nontaxable transfer.

Not-for-profit farming, Not-for-Profit Farming

Notification requirement:

Earned income credit, Notification.

P

Partner, limited, Limited partner.

Partnership, Partnership income or loss.

Passenger automobile, Passenger automobiles.

Pasture income, Pasture income and rental.

Patronage dividends, Patronage Dividends

Payments considered received, Payments Received or Considered Received

Payments received, Payments Received or Considered Received

Peanut quota buyout payments, Peanut Quota Buyout Program Payments

Penalties:

Trust fund recovery, Trust fund recovery penalty.

Per-unit retain certificates, Per-Unit Retain Certificates

Personal expenses, Personal, Living, and Family Expenses

Placed in service, Placed in Service, What Is the Placed-in-Service Date?

Pollution control facilities, Pollution Control Facilities

Postponing casualty gain, Postponing Gain

Prepaid expense:

Advance premiums, Advance premiums.

Extends useful life, Prepayment.

Farm supplies, Prepaid Farm Supplies

Livestock feed, Prepaid Livestock Feed

Prizes, Prizes.

Produce, Sales of Farm Products

Property:

Changed to business use, Property changed to business or rental use.

Improvements, How Do You Treat Improvements?

Received for services, Property received for services.

Section 1245, Defined.

Section 1252, Section 1252 property.

Section 1255, Section 1255 property.

Tangible personal, Tangible personal property.

Publications (see Tax help)

Q

Qualified disaster relief payments, Qualified disaster relief payments.

Qualified farm debt, Qualified Farm Debt

Quotas and allotments, Quotas and allotments.

R

Recapture:

Amortization, Depreciation and amortization.

Basis reductions, Recapture of basis reductions.

Certain depreciation, Recapture of certain depreciation.

Cost-sharing payments, Recapture.

Depreciation, When Do You Recapture MACRS Depreciation?, Depreciation Recapture, Depreciation recapture.

Section 1245 property, Section 1245 Property

Section 1250 property, Section 1250 Property

Section 179 deduction, When Must You Recapture the Deduction?

Recordkeeping, 1. Importance of Records, Meals.

Reforestation costs, Reforestation costs., Reforestation Costs

Refund:

Deduction taken, Refund or reimbursement.

Fuel tax, Fuel tax credit and refund., Including the Credit or Refund in Income

Reimbursements:

Casualties and thefts, Casualty and theft losses., Casualties and Thefts, Insurance and other reimbursements.

Deduction taken, Refund or reimbursement.

Expenses, Reimbursed expenses.

Feed assistance, Feed Assistance and Payments

Real estate taxes, Real estate taxes.

Reforestation expenses, Qualifying costs.

To employees, Reimbursements to employees.

Related persons, Special rule for related persons., Losses from sales or exchanges between related persons., Special rules for related persons., Property Acquired by Purchase, Like-kind exchanges between related persons., Sale to a related person., Buying replacement property from a related person., Related persons.

Rental income, Rents (Including Crop Shares)

Rented property, improvements, Improvements to rented property.

Repairs, Repairs and Maintenance, Repairs.

Repayment of income, Repayment of income.

Replacement:

Period, Replacement Period

Property, Replacement Property

Reportable transactions., Reminders

Repossessions, Foreclosure or Repossession

Residual method, sale of business, Residual method.

Returns:

Sample, 15. Sample Return

Right-of-way income, Easements and rights-of-way.

S

Sale of home, Sale of your home.

Section 179 deduction:

How to elect, How Do You Elect the Deduction?

Listed property, Additional Rules for Listed Property

Qualifying property, What Property Qualifies?

Recapture, When Must You Recapture the Deduction?

Section 197 intangibles, Intangible property.

Self-employed health insurance, Self-employed health insurance deduction.

Self-employment tax:

Community income, Community income.

How to pay, How To Pay Self-Employment Tax

Landlord participation, Landlord Participation in Farming

Material participation, Material participation.

Optional method, Farm Optional Method

Regular method, Regular Method

Rental income, Landlord Participation in Farming

Share farming, Share farmer.

Selling expenses, Selling expenses.

Selling price:

Defined, Selling price.

Reduced, Selling price reduced.

Settlement costs (fees), Settlement costs.

Social security and Medicare:

Credits of coverage, Earning credits in 2004.

Withholding of tax, Social Security and Medicare Taxes

Social security number, Obtaining a social security number.

Software, computer, Computer software.

Soil:

Conservation, Conservation Expenses

Contamination, Soil or other environmental contamination.

Special depreciation allowance:

How to elect not to claim, How Can You Elect Not To Claim the Allowance?

Qualified property, What Is Qualified Property?

Spouse, property transferred from, Property Transferred From a Spouse

Standard mileage rate, Standard mileage rate.

Start-up costs for businesses, Business start-up costs., Business start-up costs.

Suggestions for publication, Comments and suggestions.

T

Tangible personal property, Tangible personal property.

Tax help, 16. How To Get Tax Help

Tax preparation fees, Tax preparation fees.

Tax shelter:

At-risk limits, At-Risk Limits

Defined, Tax shelter.

Tax-free exchanges, Like-Kind Exchanges

Taxes:

Excise, 14. Excise Taxes

Federal use, Highway use tax.

General, Taxes

Self-employment, 12. Self-Employment Tax

State and federal, State and federal income taxes.

State and local general sales, State and local general sales taxes.

Withholding, Federal income tax withholding., Social Security and Medicare Taxes, Federal Income Tax Withholding

Taxpayer Advocate, Contacting your Taxpayer Advocate.

Telephone expense, Telephone expense.

Tenant house expenses, Tenant House Expenses

Term interests, Certain term interests in property.

Theft losses, 11. Casualties, Thefts, and Condemnations

Timber, Timber., Timber Depletion, Timber

Tobacco settlement payments, National Tobacco Growers' Settlement Trust Fund Payments

Trade-in, Sale and Purchase

Travel expenses, Travel Expenses

Truck expenses, Truck and Car Expenses

Trucks and vans, Trucks and vans.

Trust fund recovery penalty, Trust fund recovery penalty.

TTY/TDD information, 16. How To Get Tax Help

U

Uniform capitalization rules:

Basis of assets, Uniform Capitalization Rules

Inventory, Growing crops.

Unstated interest, Unstated interest.

W

Water conservation, Conservation Expenses

Water well, Water well., Water wells.

Weather-related sales, livestock, Sales Caused by Weather-Related Conditions, Weather-related sales of livestock.

Withholding:

Income tax, Federal Income Tax Withholding

Social security and Medicare tax, Social Security and Medicare Taxes