M-MTax
Level 14

Get your taxes done using TurboTax

I understand your position, but the problem is you don't own the farm, the trust does and the expenses should be deducted at the trust level.

 

If your attorney is of the opinion that it is proper for both the trust AND you to file a Schedule F, then why did you even bother posting this scenario on this board?

 

I'm not going to argue with the manner in which your attorney suggested handling this issue (although I personally wouldn't advise a client in the same manner), but I can't imagine how this won't raise issues with the trust reporting virtually all of the income on its 1041 (from Schedule F) and you reporting only $1 worth of income with a number of expenses thus showing a loss on the Schedule F you would be filing with your 1040.

 

Good luck.