Flex Rent Method for Farm Land

[matchpoint312]

I am renting my farm land with a "flex rent" method.  I receive a  fixed cash rent based on acres PLUS a percentage of sales of the crop.  It's a cash payment to me.  I do not receive any crops.  I do not materially participate in the farm operation.  

Do I still use schedule E?  

[Carl]

Yes. When you start the SCH F section, you'll be redirected to SCH E at some point. I don't know if the program makes you "aware" of this or not. It may just "do it" in the background.

Remember, all income received in your case for "any reason" pertaining to the property being rented (since you don't materially participate or receive any of the crops) is rental income.

[Critter-3]

Actually it goes on a Sch E  ... just follow the screen instructions ... if you go to the farm section by mistake it will redirect you to the Rentals section so go back ...  

[matchpoint312]

Thanks!  Makes sense and confirms my thinking. 

[matchpoint312]

Thx!