NateTheGrEAt
Employee Tax Expert

Self employed

Hi DHenke555,

 

There shouldn't be an impact. Just keep reporting the farm rental as you have been. 

 

You may be thinking of the concept of a "Real Estate Professional", but 

1) Just having a real estate license doesn't make you a Real Estate Professional by IRS rules - there are several other substantial requirements. 

2) One of the main differences about being a Real Estate Professional is that your income/loss from rentals would be considered nonpassive. However, a rental of bare land with no services provided is not likely to generate a tax loss - there is no depreciation of land. So this may be largely a moot point for land rental. 

 

Hope that information helps!

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