Who Should File Form 4970 (Tax on Accumulation Distribution of Trusts)?

Purpose of FormA beneficiary of certain domestic trusts (see Who Must File below) uses Form 4970 to figure the partial tax on accumulation distributions under section 667. The fiduciary notifies the beneficiary of an "accumulation distribution" by completing Part IV of Schedule J (Form 1041). Thus, if you received a distribution for this tax year from a trust that accumulated its income instead [...]

Elected Farm Income and Definitions

Elected Farm Income (EFI) EFI is the amount of income from your farming business that you elect to have taxed at base year rates. You can designate as EFI any type of income attributable to your farming business. However, your EFI can't be more than your taxable income, and any EFI from a net capital gain attributable to your farming business can't be more than your total net capital gain. [...]

Income Averaging for Farmers and Fisherman

Use Schedule J (Form 1040) to elect to figure your income tax by averaging, over the previous 3 years (base years), all or part of your taxable income from your trade or business of farming or fishing. This election may give you a lower tax if your income from farming or fishing is high and your taxable income for one or more of the 3 prior years was low. In order to qualify for this election, [...]

Farm Income - Other Expense

Other Expenses The following list, while not all-inclusive, shows some expenses you can deduct as other farm expenses on Schedule F, Part II. These expenses must be for business purposes and (1) paid, if you use the cash method of accounting, or (2) incurred, if you use an accrual method of accounting. Accounting fees. Advertising. Business travel and meals. Commissions. [...]

Farm Income Expense - Taxes

Line 29 (Schedule F) You can deduct the following taxes on this line. • Real estate and personal property taxes on farm business assets. • Social security and Medicare taxes you paid to match what you are required to withhold from farm employees' wages. • Federal unemployment tax. • Federal highway use tax. • Contributions to state unemployment insurance fund or [...]