Schedule F changes for farm clients, tax year 2025

• Mileage: 70 cents a mile for 2025.
• Bonus depreciation: 100% for qualified property acquired after January 19, 2025, with the old phase-down for property acquired earlier.
• Section 179: up to $2,500,000, reduced once property placed in service passes $4,000,000.
• Business interest: depreciation, amortization and depletion are added back to adjusted taxable income for 2025 (Form 8990).
• Car loan interest: personal use on Schedule 1-A, business share on Schedule F.
• Disaster relief: eligibility and filing rules for personal casualty losses from disasters were expanded (Pubs. 225 and 547).

New section 1062 lets a taxpayer pay the tax on gain from selling qualified farmland to a qualified farmer in four equal annual installments, starting in the year of sale, for tax years beginning after July 4, 2025. The IRS says a new Form 1062 will carry the election. For calendar-year farmers that means sales from 2026 onward.

Ask any client planning to sell farmland who the buyer is and whether the land will stay in farming, because the election depends on both.

Equipment purchases are where the money is this year. In HelloBooks the purchase invoice sits on the transaction and in the fixed asset register, so you can see what was bought, when and from whom when you decide between bonus depreciation and Section 179.