I received a 1099 misc for farmland I cash rent to a farmer

[jlsk1985]

I don't know where to claim my income from cash rented farmland, received a 1099 misc from the farmer

[PatriciaR]

What box is the amount shown in on the 1099?

[view2 · Accepted solution]

 Cash rent received for pasture or farmland if the amount is based on a flat charge. Report this income directly on Schedule E (Form 1040)

You only Use Form 4835 to report farm rental income based on crops or livestock produced by the tenant if you were the landowner (or sub-lessor) and did not materially participate (for self-employment tax purposes) in the operation or management of the farm. 

[pmchristner]

My brother and I rent some farmland that was inherited by us. We do simple cash rent and the gentleman that we are renting too wants to send us a 1099 form. Is this right for him to do? 

[kwubb]

Our family has the same situation and the renter always reports it on a 1099 misc.

[ToddL99]

Yes, your tenant is correct in wanting to report his rental payments to you on a Form 1099-MISC.

This ensures he can claim a business deduction for his payments to you and that you report those payments as income on your tax return.

There is a "Farm Rental Income and Expenses" interview in the "Business Income and Expenses" section of TurboTax Self-employed (or Home & Business).

@pmchristner

[kwubb]

I only have the premier version. I've been told not to list it under Farm rental income because Im not involved in the management of the farm. 

[DaveF1006]

You can report this income in your rental and royalty section in your Turbo Tax Premier version.

1. Now open Turbo tax if it is not already opened
2. Go to federal>income and expenses>rental properties and royalties>Rental Properties and Royalties (Sch E)
3. What are you here to report? Rental
4. When it asks for a description, you will say Farmland
5. Then it will ask information where this royalty is located. You may have entered this already but if you haven't, this may be useful.
6. Then answer the next few questions when it asks more information about your farmland.
7.  After you finish your profile regarding your rental farmland, you will be taken to a rental summary screen.  Here is where you will enter information recorded on your 1099-MISC. 

[TerryS81230]

Dave,

We have rented bare farmland we own in Kansas for several years and it is a simple rental with a cash fee.  We do not participate at all in the use of the land and receive no further income other than the rental fee.  We have done this for several years and this is the first  time we've had difficulty in reporting the rental fee.

I have followed your information  above.but I continue to get my return rejected.  The message on the rejection refers to a SF-F, a Schedule F.  I cannot find a Schedule F in my return.  The pre-print view only shows the worksheet for Schedule F.

The error message is "Line C 'MethodOfAccountingCashind' checkbox is checked then Part l, Line 9 "GrossincomeAmt' within[FarmIncomeCashMethodGrp] or Part II, Line 33 'TotalExpensesAmt' must have a non-zero value.
A second error message is similar and also refers to Schedule F and says that a non-zero value must be in Line 9,  Line 33 and Line 34.

Can you help me find Schedule F or point out where I need to make changes.  My frustration index is really high right now after 3 rejections

[DaveF1006]

This is unusual in the sense that this should not be reported on a Schedule F but a Schedule E along with form 4835.  If recorded properly, the rental income will appear in part V, line 40 of the Schedule E. This amount is generated from Form 4835. Here are the precise steps to report so that both of these forms appear in your return.

1. Go to federal>income and expenses>

2. Rentals, Royalties, and Farm>

3. Farm Income and Farm Rental

4. Did you have any farm or farm rental income in 2021? Yes

5. Tell Us About Your Farm or Farm Rental Income. indicate I received agricultural payments on a 1099-MISC or 1099-G for my farm rental

6. When it asks you about your Farm rental. For EIN, put your Social Security number if you don't have an EIN.

7. Now when it asks about rental farm income, check the box that says Farm Income Reported on 1099-MISC and then record the information

8. if you have expenses, you can record these in Farm income and Expenses paid.

I am thinking you may missed the step in step 5 that specifically mentions that this is a Farm Rental and not farm income. 

@TerryS81230

 

[TerryS81230]

Ahh, that worked.  Got rid of the Schedule F and everything worked out as it should.  

Dave, Kudos to you for your help on this.

TerryS

[billbowhunter]

Thanks for the discussion.  I also was puzzled and ended up having the land rent via the 1099 misc  and the net rent income both show on my return with Turbo deluxe and couldn't get out of it so just paid taxes on both.  reporting the 1099 seems to double up and I could not see how to cancel it our.  Saved your discussion and hope I can find it and follow it next year.  Not easy to correct 

[AmyC]

You do not want to double report income. I recommend you e-file an amended return as soon as the original return is completely finished- all payments have cleared the banks, E-filing will shorten the refund delay. Please:

• Save a copy of the original return before doing an amended return.
• See how to file an amended return.
• Follow your amend at track an amended return 
• Here is a great FAQ to show the math for amended returns. 

In addition, you may need to file a state return. If you must paper file, tracking is recommended.

• See  I need to amend my state return.
• Can I e-file my amended state return? 

@billbowhunter