Net Income Allocated to Qualified Payments Question

[Spencer7]

Looking for some additional help in how to answer this question.  I have a Farmers Coop 1099 PATR with #'s in boxes 1,3,& 7.  I understand that Box 1 - Patronage dividends is taxable amount the Coop has allocated to me.  I understand Box 3- Per-unit retain allocations is the gross value of the grain I sold to the Coop. I understand Box 7 - Qualified payments is the amount the Coop has paid me both in dividends and grain sales.  So, what is my net income? Is it just the Coop grain payments or is it all farm income or is it all income or is it only the dividend?    I reviewed an answer to a similar question in '20 but am unclear just what #'s to use in determining the %.

Is the amount received on the 1099PATR my dividend - Box 1?

What is my revenue received?- All farm gross income, all grain sales, all qualified payments????

Then last but not least what is the net income they are referring to? All income from all sources, all income from only farm sources, only Coop dividends, only Coop Per unit retain allocations,???- 

"taking the amount you received on the 1099-PATR and dividing it by the total amount of revenue you received. This will give you a percentage. Take the net income and multiply the net income by this percentage."

Thank you in advance

[JosephS1]

From the TurboTax FAQ, perhaps the following will assist you:

TurboTax FAQ

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Where do I enter Form 1099-PATR?

by TurboTax•2336•Updated 2 weeks ago

Most often, your Form 1099-PATR reports dividends associated with a farm or cooperative (co-op). You can also receive a 1099-PATR for other reasons (for example, a land bank mortgage or backup withholdings made on your behalf).

Tip: If the dividends in box 1 of your 1099-PATR came from property purchased for personal use (or capital assets or depreciable property used in your business), you don't have to enter your 1099-PATR. Keep it with your tax records, though.

To enter a 1099-PATR for farm or co-op dividends:

1. Open (continue) your return in TurboTax
2. Inside TurboTax, search for 1099-PATR (be sure to include the dash) and then select the Jump to link in the search results
3. Follow the instructions to enter info about your farm
4. When you get to Your Farming Income and Expenses, you will enter your 1099-PATR info in Livestock, grain, produce, custom work, co-ops

If your 1099-PATR isn't for farm or co-op dividends, it gets entered as general business income:

1. Open (continue) your return in TurboTax
2. Inside TurboTax, search for business (schedule c) (use this exact phrase) and then select the Jump to link in the search results
3. When asked Did you have any self-employment income or expenses? answer Yes
   1. If you'd previously entered self-employed income, you'll come to Your 2022 self-employed work summary. Select Add another line of work to enter information about your farm
4. Follow the instructions to enter info about your farm
5. When you get to Let's enter the income for your (type of farming) work, select Other self-employed income and Continue
6. Enter the information from your 1099-PATR on the Tell us about other self-employed income screen

Related Information:

• Do I need to enter ESPP transactions?
• Where do I enter my HSA contribution?
• Where do I enter a 1099-B?
• What is depreciation?

While I acknowledge this does not answer your specific question, I hope it leads you in the right direction.

Form 1099-PATR Instructions

@Spencer7

[Spencer7]

Appreciate your response. Thank you.