I am a trustee and also a beneficiary of an irrevocable farm trust that grosses $200,000 per year and distributes profits of over $50,000 annually to 6 sibling beneficiaries of which I am one of the 6 beneficiaries. I am 'paid' $1.00 per year and bear all costs of active professional farm management with 6 different crop share (50% / 50%) in crop share (50/50) leases involving grain marketing, land management, tenant relations, USDA contracts etc plus I also do the Farm Trusts federal and state tax returns. Since its a family trust, all of my professional farm management expenses (postage, computer, software, phone, printer, legal, crop inspection trips, milage, repairs) are absorbed by me and not reimbursed by the Trust or family members. I would like to claim all these expenses on my taxes as they are legitimate costs to me to run the farms. How would I best do that? The actual farm trust files with Schedule F (Profit or Loss from Farming) and 1041 and I cannot deduct my actual expenses that route. As an individual 1040 filer, I don't think i can file under schedule C since I don't have a proftable business. The best option seems to file my all my expenses under Schedule F (Profit or Loss From Farming) as I have expenses from farming, do all the management, just no income other than my $1.00 per year trustee payment. And the USDA considers me a 'farmer' and 'farm landowner'. Ideas?
