I own farm land and rent it to others for cash. Do I declare this income on Sch E or Sch F?

[iitzen]

Is this considered rental real estate or farming?

[Cattlerancher · Accepted solution]

Farm land rented for cash goes directly onto schedule E.

Farm Rental is for when the landlord receives share crop income, (a percentage of the crop raised, not a cash payment).

Earned Income from a farm goes on schedule F which is subject to Se tax.

This is from the General Instructions for IRS form 4835;

Do not use Form 4835 if you were a/an:

• Tenant—instead use Schedule F (Form 1040) to report farm income and expenses;

• Landowner (or sub-lessor) and materially participated in the operation or management of the farm—instead use Schedule F (Form 1040) to report farm income and expenses;

• Landowner (or sub-lessor) and received cash rent for pasture or farmland based on a flat charge—instead report as income on Schedule E (Form 1040), Part I;

• Estate or trust with rental income and expenses from crop and livestock shares—instead report on Schedule E (Form 1040), Part I;

or • Partnership or S corporation with rental income and expenses from crop and livestock shares—instead report on Form 8825.

[MichaelL1]

Farm land rented for cash goes on the Sch E as stated above by others. 

[edited 1/30/2017]