I have a Pine Plantation tree farm and I have signed a contract to lease land for a cell tower. I will receive monthly rental income where do I show this income.

[TreeFarmGuy]

Do I show this as miscellaneous farm income, or on schedule E? I have a farming loss on the years I do not cut timber, if shown on schedule E can the farming loss be used against the rental income?

[Critter · Accepted solution]

It is income on the Sch F if it is part of the farm property. Otherwise it goes on the Sch E and the profit on one will balance the other on the form 1040. 

[TreeFarmGuy]

Thanks for the help!