Farmers report items held in supply on Line 28, Schedule F. These supplies could include the following: twine, nails, fence staples, bags, tobacco curing sticks, pots, shop towels, etc. IRS regulations provide that any item of tangible personal property purchased for use in a business (not inventory) that costs $200 or less is deductible as materials and supplies.
The Center for Agricultural Law and Taxation is a partner of the National Agricultural Law Center (NALC) at the University of Arkansas System Division of Agriculture, which serves as the nation’s leading source of agricultural and food law research and information. This material is provided as part of that partnership and is based upon work supported by the National Agricultural Library, Agricultural Research Service, U.S. Department of Agriculture.