AgExpert Analyst > Transactions > Entering commodity futures
Search and find answers to commonly asked questions about our farm accounting software.
Entering commodity futures
Commodity Futures Income transactions involving commodity futures can be recorded as a commodity sale if:
- you reported the futures transaction as farming income (loss) for income tax purposes
- the transaction involves a primary agricultural product that you produced on your farm
- the transaction is considered a hedging strategy, not speculation
If your futures transactions meet this criteria, then report them as follows:
- For futures transactions reported as a gross amount, record the income as a commodity sale using the line code for the commodity. Record related purchases as a commodity purchase using the line code for the commodity.
- For futures transactions reported as a net amount, record the net gain as a commodity sale using the line code for the commodity. Record the net loss as a commodity purchase using the line code for the commodity.
Last updated on February 6, 2013 by FCC Management Software