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Level 3
posted Jun 1, 2019 12:09:25 PM

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.

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?

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1 Best answer
Level 15
Jun 1, 2019 12:09:27 PM

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. 

2 Replies
Level 15
Jun 1, 2019 12:09:27 PM

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. 

Level 3
Jun 1, 2019 12:09:28 PM

Thanks for the help!