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Returning Member
posted Apr 5, 2024 6:27:21 PM

Schedule F versus Form 4835 For Farm Rental Income

I've been using Turbotax Deluxe for last several years.  I have passive income from shares in a farm that I own wherein a local farmer does all the farming and makes decisions, etc.  I've always answered "not materially partipated" in Turbotax, which I easily fit into.  But Turbotax has been listing the income on Schedule F instead of Form 4835 where it should be.  Shouldn't TT show the income on Form 4835?  As a result, of Schedule F, I end up paying self-employment taxes.  Can you tell me what is happening here?  Was Form 4835 available in previous years?  It's only TT2023 where I noticed it showing up.

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1 Replies
Expert Alumni
Apr 10, 2024 11:30:08 AM

Yes, certain answers to TurboTax questions in this topic will report Farm Rental Income on Schedule F or even Schedule E. Follow these steps to report this activity on Form 4835.

 

  1. Open your return and go to Federal >> Wages & Income.
  2. Scroll down to Business Items or Rentals, Royalties, and Farm (this depends on what version you are using).
    Note: You may need to search for "farming" to open the Farm Income and Farm Rental topic. Don't enter anything if you do. Use the Back command to return to the Wages & Income page.
  3. Select or Start/Update/Revisit Farm Income and Farm Rental.
  4. On "Did you have any farm or farm rental income in 20XX?" click Yes.
  5. On "Tell Us About Your Farm or Farm Rental Income," select I received a share of the production from my farm rental (this is required to trigger Form 4835).
  6. Select I did not materially participate in my farm rental, then Continue.
  7. Complete the rest of the screens, including income and expenses for this activity.
    Note that you don't need an EIN unless you paid wages.