Tax Drill $-$ Special Rules for Small Farmers

Complete the following statements regarding special rules for small farmers.

Farmers who produce crops that take

than a year from planting to harvesting

the crop method to report the income. Under the crop method, the costs of raising the crop are

as those costs are incurred and then

in the year the income from the crop is realized. In addition, a cash basis farmer generally

the purchase price of an animal, whether it is acquired for sale or for breeding. However, the cost of raising the animal is