Excess Prepaid Farm Supplies Law and Legal Definition

The term excess prepaid farm supplies means the prepaid farm supplies for a taxable year to the extent that the amount of such supplies other than prepaid farm supplies exceeds 50 percent of the deductible farming expenses for the taxable year [26 USCS § 464 (f)(4)(A)]. Generally deduction of excess prepaid farm supplies is allowed in the tax year in which the supplies are actually used or consumed.