Question

Farm interest income

Forum|Forum|4 years ago
March 24, 2022
1 reply
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I have a client that built poultry house $1.2 m, the bank that financed the construction. would put the draws in a interest earning checking account.. He drew $6000 in interest., but also paid $65000 in interest.

This should not be considered as investment income and report on schedule B, I think it should be farm income. If reported on schedule B he losses his EIC. any suggestions.

They IRS is not allowing him to count as income on schedule F.

Not A Product Question

T

ThomasM125

Interest is earnings from the use of money. Unless you are in the business of loaning money, the interest is not business income and as such cannot be considered earned income. He did not provide any products or services to earned the interest, so it is not considered earned income.

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