TN 7 (06-90)

A. POLICY

In general, all cash expended in the operation of the farm is allowable as a deduction from gross farm income.

B. KINDS OF EXPENSES

Some kinds of expenses are listed below. This list is not all inclusive.

• Feed for livestock

• Seed, plants, seedlings

• Farm supplies

• Breeding fees

• Fertilizer and lime

• Crop insurance

• Subscriptions to farm periodicals

• Fees for testing livestock

• Expenditures related to or arising out of the farm, but are not for capital expenditures nor personal living expenses.

• Reasonable wages for the work done by a member of the farmer's family.

• Depreciation (including livestock).