Report your farm income on Schedule F (Form 1040). Use this schedule to figure the net profit or loss from regular farming operations.

Income from farming reported on Schedule F includes amounts you receive from cultivating, operating, or managing a farm for gain or profit, either as owner or tenant. This includes income from operating a stock, dairy, poultry, fish, fruit, or truck farm and income from operating a plantation, ranch, range, or orchard. It also includes income from the sale of crop shares if you materially participate in producing the crop. See Rents (Including Crop Shares), later.

Income reported on Schedule F does not include gains or losses from sales or other dispositions of the following farm assets.

• Land or depreciable farm equipment.
• Buildings and structures.
• Livestock held for breeding, dairy, sport, or draft purposes.

Gains and losses from most dispositions of farm assets are discussed in chapters 10 and 11. Gains and losses from casualties, thefts, and condemnations are discussed in chapter 13.

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