Farm Income and Depreciation

jtl3 · ‎February 17, 2021

I have used Turbo Tax for years. This year I am having problems. My wife and I have two farm properties. The farm income for these properties together shows up on Form 1040 Schedule on both lines 8 & 9. The values are different. Neither value matches the values from Form 4835. I made a mistake entering the depreciation in the wrong category and corrected it by putting drainage tiles in the land improvement category. I also have Schedule F entries for both farms and the depreciation information does not show up. It is on the Section 179 line on 4835. The value of the depreciation is very different from the two previous years. I need help.

ThomasM125 · ‎February 17, 2021

Line 8 on form 1040 is the total of schedule 1, which includes several types of income as you can see here:

Line 9 is the total of all your income, so those two lines will likely not be the same amount. Since schedule 1 can have income in addition to your farm income on form 4835, that seems normal.

If depreciation for the farm assets is showing on form 4835 instead of schedule F, then you need to enter the assets in the farm section not the land rental section of TurboTax.

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jtl3 · ‎February 19, 2021

Thanks, but that does not deal with my problem. My farm income is showing up on both line 6 & 7 in different amounts. I entered the depreciation on Schedule F.

Farm Income and Depreciation

Business & farm

Business & farm