Farm Income Expense - Freight and Trucking

http://www.irs.gov/pub/irs-pdf/i1040sf.pdf

You can deduct the actual expenses of operating your car or truck or take the standard mileage rate. You must use actual expenses if you used five or more vehicles simultaneously in your farming business (such as in fleet operations). You can't use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle. You can take the standard mileage rate for 2021 only if you:

• Owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service, or

• Leased the vehicle and are using the standard mileage rate for the entire lease period. If you take the standard mileage rate:

• Multiply the number of business miles driven by 56 cents; and

• Add to this amount your parking fees and tolls, and enter the total on line 10. Don't deduct depreciation, rent or lease payments, or your actual operating expenses.

Don't include the cost of transportation incurred in purchasing livestock held for resale as freight paid. Instead, add these costs to the cost of the livestock.

Additional information. Pub. 225 has more information and examples to help you complete your farm tax return. It also lists important dates that apply to farmers.