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cmarmstead14
cmarmstead14
Level 1
posted
‎June 4, 2019 6:08 PM
last updated ‎June 04, 2019 6:08 PM

We Did a Farm Service Loan for cattle, received a 1098. How do I enter this? Is the initial loan farm income, then when the loan is paid back w/interest a deduction?

Farm Income and Farm Service Agency Loan

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Vanessa
Vanessa
Level 3
‎June 4, 2019 6:08 PM

We Did a Farm Service Loan for cattle, received a 1098. How do I enter this? Is the initial loan farm income, then when the loan is paid back w/interest a deduction?

No, a loan is not income.  It is treated as you spending cash because you are legally liable for the loan.

You can deduct the interest as an expense as you pay the interest (for the amount reported on the 1098) as a Farm business expense. 

You will enter this on the farm return section as an expense.  To do this you will need to upgrade to TurboTax Home and Business.

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1 Reply
Vanessa
Vanessa
Level 3
‎June 4, 2019 6:08 PM

We Did a Farm Service Loan for cattle, received a 1098. How do I enter this? Is the initial loan farm income, then when the loan is paid back w/interest a deduction?

No, a loan is not income.  It is treated as you spending cash because you are legally liable for the loan.

You can deduct the interest as an expense as you pay the interest (for the amount reported on the 1098) as a Farm business expense. 

You will enter this on the farm return section as an expense.  To do this you will need to upgrade to TurboTax Home and Business.

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16
Reply