@Cattlerancher I'm not really concerned with his taxes, just trying to determine how to report this. The original agreement formula was Crop %share Amt - x/acre core expense (for sprays/fertilizer). One year he did ask for a check to him for purchase of the new needed replacement trees and replanting (he lumps the tree cost and replanting fee together per tree). But all the other years he has replanted, he just deducts it off the crop share amt as he must figure it saves having to have me send him a check. As I see it, while the cash flow is the same, the amount shown on the 1099-MISC is what the gov. sees as farm income and differs depending on how it's filled out.
So are you standing by your same answer above in light of this additional info? I can depreciate and if audited, claim he didn't put the correct amount on the 1099-MISC or stop depreciating and let the trees essentially be written off as an expense (which to me seems incorrectly handled.)
