Yearly - seed, fuel, fert, small repairs, other things you buy & use in a year.
Mid term: Machinery, and other stuff that you use for about 5-7 years, these get deducted over a 5 or so year period, 1/5 each year for the next 5 years. There may be complicated ways to deduct the entire cost in one year, or file amended taxes for past years and reduce your taxes from past years, etc.
Long term: Buildings, tile, and other things that probably have a 20 year lifespan, get deducted over a 20 year period, 1/20th each year. Again, there are complicated 'quick' deductions you can sometimes use.
You get to claim income on the year you sell a crop, not always the year you grow the crop.
The biggest part of farming is working within these rules to plan your taxes, you can perhaps buy fertilizer and seed in November for the following year, and sell your crop in February so as to have lower income or higher deductions to match up to good years or poor years and keep from spiking your income into a different tax bracket.
Sitting down with a good farm tax preparr before year end and spending $200 on his time to plan out a good business straitigy could be money well spent. Yes, it's a game of playing with tax income and expenses, some will view it as loopholes, but it is how the govt has set up the system, you either play the game or you pay extra taxes....
Bringing in your reciepts in Jan works, but you missed out on the planning to help yourself. Good plan if you understand the tax stuff already, but you could miss a lot if you don't. Be aware if you make money farming, you can owe those taxes on March 1st, not the normal tax date for paycheck folks.
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Today's Featured Article - Timing Your Magneto Ignition Tractor - by Chris Pratt. If you have done major engine work or restored your tractor, chances are you removed the magneto and spark plug wires and eventually reached the point where you had to put it all back together and make it run. On our first cosmetic restoration, not having a manual, we carefully marked the wires, taped the magneto in the position it came off, and were careful not to turn the engine over while we had these components off. We thought we could get by with this since the engine ran perfectly and would not need any internal work. After the cleanup and painting was done, we began reassembly and finally came to t
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