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March 28, 2021
Question

Farm income

  • March 28, 2021
  • 1 reply
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Have $1600 from farm rental, turbo tax is counting that as income in the business section and then it wants me to put that income in the royalities section counting it as double income.  Where should this actually go so it isn't counted as double income!

    1 reply

    ColeenD3
    March 28, 2021

    You should delete the forms where it is entered at this point so things don't get more confused.

     

    See this answer from Cattlerancher.

     

    Farm land rented for cash goes directly onto schedule E.

    Farm Rental is for when the landlord receives share crop income, (a percentage of the crop raised, not a cash payment).

    Earned Income from a farm goes on schedule F which is subject to Se tax.

     

    This is from the General Instructions for IRS form 4835;

    Do not use Form 4835 if you were a/an:

    • Tenant—instead use Schedule F (Form 1040) to report farm income and expenses;

    • Landowner (or sub-lessor) and materially participated in the operation or management of the farm—instead use Schedule F (Form 1040) to report farm income and expenses;

    • Landowner (or sub-lessor) and received cash rent for pasture or farmland based on a flat charge—instead report as income on Schedule E (Form 1040), Part I;

    • Estate or trust with rental income and expenses from crop and livestock shares—instead report on Schedule E (Form 1040), Part I;

    or • Partnership or S corporation with rental income and expenses from crop and livestock shares—instead report on Form 8825

     

    Here's the general procedure for viewing the forms list and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

    1. Open or continue your return in TurboTax.
    2. In the left menu, select Tax Tools and then Tools.
    3. In the pop-up window Tool Center, choose Delete a form.
    4. Select Delete next to the form/schedule/worksheet in the list and follow the instructions.