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1040 Schedule F Line 18

Forum|Forum|3 years ago
October 3, 2022
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Line 18 on 1041 Schedule F is for "Freight". I've been using this to report only freight paid to ship my farm products out. I've been advised that I should also include freight paid on items (fertilizer, etc.) I purchase and have shipped to me. Is this true? Up to now I have been including that as the cost of the incoming item. Schedule F instructions say I should do that for purchased livestock so I figured it should apply to all purchases.

Not A Product Question

Best answer by Critter-3

Line 18 is for outbound freight costs. Inbound freight is added to the cost of the purchases or are part of COGS.

Read the form instructions : https://www.irs.gov/forms-pubs/about-schedule-f-form-1040

Line 18
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.

Critter-3Answer

Line 18 is for outbound freight costs. Inbound freight is added to the cost of the purchases or are part of COGS.

Read the form instructions : https://www.irs.gov/forms-pubs/about-schedule-f-form-1040

Line 18
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.

C

cafray11Author

Right. I did read the instructions, which is why I've been including it in the cost of other items purchased for the farm. Looking for validation of my rationale since I've recently heard otherwise.