If it is a farm business, then you need to fill out Schedule F for federal taxes, and use all the deductions allowed. Get ahold of F and its directions and most of it will be self-explanatory except maybe items that need to be depreciated (tractors, fences, etc.) If you are really unfamiliar with doing taxes, it might be good to use an accountant, at least the first year.
Ann

If you use an accountant make sure they do farm taxes before hiring them. F-forms are rare in the tax prep world and a lot of accountants will not do farm taxes.

For 1/8 acre, there should also be no quibble if you used schedule C. Whether you use F or C, you'll also need to fill out SE for self-employment tax, assuming that after deductions your gross income produces some net.

i am a cpa. use schedule F. you can deduct any expenses incurred in generating that income. the IRS has some publications you can read on their website. Try to find the one called Farmers Tax Guide. I agree that it would be to your benefit to consult a CPA near where you live and preferably one who has some farm tax experience. i hope you kept receipts for your expenses.

Here is a link that might be useful: IRS publications

keep track of everything by the time u get done u may not have much profit from the 9,000

Thanks everyone for the helpful advice. My wife and I will look over the schedule F and maybe we can find someone in the area with a bit of farm experience; though I'm not sure they will consider 1/8 acre a farm.

If you grossed $9,000, I think they WILL consider it a farm. But you may also end up with a loss which you can deduct from your other income, so it could help you that way.