Last year (2018) I received a 1099-MISC for farm rental income and filed form 4835, but this year I started farming the ground myself for profit so I am filing a schedule F. My question is what do I do about the carry over from the 4835 form from the previous year to show that I transitioned to farming it myself? By carry over i am talking about the expense i claimed for managing the farm that I was renting. Specifically vehicle expenses/depreciation that were recorded on the form 4835 and form 4562? I am using Turbo tax 2019 home and business.
If TurboTax has pulled the prior year "4835 farm" information, start that section and edit the Business Info/Special Situations section. At the question "Do any of these uncommon situations apply to this business?" uncheck the box indicating you did not materially participate in the operation of the business. If this causes your TurboTax to generate a Schedule F for the business, you vehicle and other assets from the previous year should be "linked" to that Schedule F.
If this fails to generate a Schedule F, one solution is to add the Schedule F farm business as a separate business, and re-enter your vehicles and other assets.
Thank you. I was able to generate a schedule F and re-enter my vehicles and other assets. I think the software didnt link the two because i changed the name of the farm when I started operating it myself as opposed to renting it. In this situation do I just delete Form 4835 for 2019 because i dont have income or expenses for farm rental property in 2019 and this is all handled with the schedule F now or is there some check box on the form 4835 being filed in 2019 to indicate that the farm used in 2018 is no longer and I am therefor starting fresh in 2019 with this schedule F or just enter all zeros for income and expenses on the form 4835 in 2019?
If you are just transferring (manually) everything from 4835 to a Schedule F, you should "end" the Farm Rental on Schedule 4835.
Follow these instructions:
If you've filed Form 4835 in the past on the income from this land, then it needs to be reported as a sale of business property, you can "sell" it with -0- gain or loss if appropriate for this situation.
Go to your Business tab.
Click Continue.
Select I'll choose what I work on.
Click Start or Update by Farm Rental Income and Expenses.
Click by your farm name OR set it up.
On the Tell us about your farm page, check I sold or otherwise disposed of this farm during 2019.
Continue till you get back to Your Farming Income and Expenses.
Continue till you get back to Let's gather your business info.
Scroll down to Less Common Expenses.
Select Start or Update by Sale of Business Property.
Select Sales of business or rental property that you haven't already reported.
(This includes certain farmland, mineral, or conservation property.) on Any Property Sales?
On the Sales of Business or Rental Property page, enter the info from the sale.
Depending on your answers, you'll have a few follow up questions.
Click Continue till you get back to Farm Rental Income and Expenses.