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We received a grant for our farm business from our state SBA, not the USDA or state DA. CAn we still list it as income on our schedule F? and how do we show it as taxable on the schedule F? There is no category for taxable income.
We received a grant for our farm business from our state SBA, not the USDA or state DA. CAn we still list it as income on our schedule F? and how do we show it as taxable on the schedule F? There is no category for taxable income.
How do we indicate the amount is taxable? There is no taxable category?
A grant for a farm must be entered in the personal section as other income.
To enter Other Income, please follow the steps below:
The reason behind this is that the Grant cannot be counted into the Qualified Business Income Deduction, therefore cannot be included in farm income.
So how do you then write off the expenses associated with the grant? I've been told by TT and many others to, since this is associated with a farm, to include it on the schedule F ...make sure it goes on the taxable line....and then you can write off the expenses on the F.
There is a "taxable income" line on the Schedule F. Make sure it ends up there as grants are generally taxable and TT doesn't necessarily do that for you.
Yes, this is true but if you report it the way PattiF has described it above, it is not Farm income but reported as other reportable income. Be sure to follow her steps and not report this as Schedule F income because of the QBI limitation that she described.
What is the concern with QBI regarding farm income? I can't seem to find anything that states that farms are ineligible for this deduction. Thanks.
Yes, Farm income may be eligible for the QBI Deduction.
Click this link for details on How QBI is Calculated for Farm Income.
TurboTax asks QBI questions after you have finished entering your business income/expenses.
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