What category would I enter our farm land under? We rent out some of our land to a local farmer to grow/sell crops. Thanks!

[LeonardS · Accepted solution]

The category would be rental income for the farmland you rent to a local farmer to grow/sell crops. Rental income and expenses are entered in Schedule E Supplemental Income and Loss.

To enter your rental information follow these steps:

1. In TurboTax, search for rentals and select the Jump to link at the top of the search results.
2. Answer Yes to the question Did you have any rental or royalty income and expenses in 2021 for property you own?
3. Follow the on-screen instructions as you proceed through the rental and royalties section.
   • You will be asked to enter general information about your rental (like description, address, and ownership percentage).
   • On the page Rental Summary screen, is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.

This link Where do I enter income and expenses from a rental property? has information you may find useful.

 

[maulmen-charter-]

Thank you! That was helpful. I'm assuming the property type is "land?"

[JulieS]

Yes, the property type should be land.

[shannontxag]

I also have a farm rental and I’m working on my 2021 taxes. The screen for “ farm rental expenses” says 2019 and 2020. Shouldn’t it say 2020 and 2021?  Where do I enter my 2021 expenses?

[DawnC]

Yes it should.  Anything you enter in the Farm Rental section (or any section in the 2021 software) will be entered on your 2021 tax return.   The column labels have not been updated to reflect the correct years, but, rest assured, it will not affect your return - it is a visual issue but not a computation issue.  It will be corrected in an upcoming release; thank you!   @shannontxag

Farm Rental Income and Expenses - Since you mentioned your farm, I thought you might find this helpful.  

[Hal_Al]

The above answer (you file the income and expenses on Schedule E), assumes you receive a fixed rent dollar amount for the land rental.

"Landowners and sub-lessors that do not materially participate in the operation or management of the farm (for self-employment tax purposes), file this form to report farm rental income based on crops or livestock produced by the tenant" 

Reference: https://www.irs.gov/forms-pubs/about-form-4835