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August 17, 2021
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Farm Income

  • August 17, 2021
  • 2 replies
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Missing Schedule E pg 1, thus the Form 4835 income is showing up on Schedule 1.

 

    Best answer by Critter-3

    READ the   line 34c of the 4835  ... the line says  it is  supposed to go to line 40 of the Sch E pg 2  per the IRS rules so that is why TT puts it there.    https://www.irs.gov/pub/irs-access/f4835_accessible.pdf

     

    Page 1 of the Sch E is only present if used ... it is not needed in this situation. 

    2 replies

    August 17, 2021

    Form 4835, Schedule E, and F are separate forms. the activity reported on any of these forms flows directly to schedule 1. it's possible you entered the activity on the wrong form. here is guidance on the various forms that can be used depending exactly on what the activity is.

    Purpose of Form 4835
    If you were the landowner (or sub-lessor) and did not materially participate (for self-employment tax purposes) in the operation or management of the farm, use this form to report farm rental income based on crops or livestock produced by the tenant. Use this form only if the activity was a rental activity for
    purposes of the passive activity loss limitations. If you have net income on line 32, your tax may be less
    if you figure it using Schedule J (Form 1040) - Income Averaging for Farmers .........
    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 

    • Estate or trust with rental income and expenses from crop and livestock shares—instead report on Schedule E

    August 17, 2021

    In your return, search for Farm Income and enter all of the information for your farm.  Be sure that you farm income is being entered correctly.  If this does not resolve the issue, then call the helpdesk to find out what is wrong.

    August 17, 2021

    I completed Form 4835 with income reported on on Schedule E pg 2 (Form 1040) line 40.  The income then transferred to Schedule 1 Line 5.  My questions is why does the Turbotax report only have Schedule E pg 2.  What happened to Schedule E pg 1 and do I need it?

    Critter-3
    Critter-3Answer
    August 17, 2021

    READ the   line 34c of the 4835  ... the line says  it is  supposed to go to line 40 of the Sch E pg 2  per the IRS rules so that is why TT puts it there.    https://www.irs.gov/pub/irs-access/f4835_accessible.pdf

     

    Page 1 of the Sch E is only present if used ... it is not needed in this situation.