A good set of records will help you organize your farm income and expenses. Your ISU Extension office has an inexpensive farm record book that should be adequate for a small farm, hobby farm, or a farm that is rented to others. Reviewing a Schedule F will give you an idea of incomes and expenses related to farming. Don't forget items that must be depreciated, especially if they have been acquired this tax year. Some expenses need to be prorated between farm and personal use.
Examples are utilities, computers and software, and automobile upkeep.
Approved soil and water conservation expenses on a cash rented farm cannot be deducted. Instead, they are added to the basis of the land. Under a crop-share lease, these expenses are limited to 25 percent of the gross income from farming for the year. The unused deduction can be carried over to later years, but under the same limit each year. More information is available in the Farmer's Tax Guide, an IRS publication available free of charge at most county extension offices.