Question

Ranch kid conundrum, livestock income without expenses

Forum|Forum|4 years ago
March 13, 2022
1 reply
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Hello,

I grew up on a ranch and am now a software developer. I still own a few cattle that my parents keep on their ranch and they entirely care for as a gift. In 2021 I sold several calves and received a check directly from the livestock market for the proceeds (~$2k). I am struggling to figure out where to enter this income in this years TurboTax. Since I have no farm expenses TurboTax seems to send me down the "farm rental" path but this is not correct. The Farm Income - "Livestock, grain, produce, custom work, co-ops" seems most appropriate but "Other farm income" does not seem out of the question. If I submit a Schedule F that only contains income (Part 1 - Box 2) without any expenses am I immediately going to be audited? Thanks in advance!

TurboTax Home & Biz Windows

LeonardS

No, if you submit a Schedule F that only contains income without any expenses you will not be immediately audited.

The sales of your livestock raised for market will be reported in Part 1 line 2 of Schedule F (Sales of livestock, produce, grains, and other products you raised).

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