Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
md1
Level 1

Should I enter sale of farmland purchased part by %inheritance under business situations or Personal investment situation? rental income was reported form 4835 in past.

Farmland and purchased 8 yrs ago and have completed form 4835 every year reporting rental income.  Not sure if I report as business property sale or sale of land on the personal sale. 

1 Best answer

Accepted Solutions
CherylW
Level 3

Should I enter sale of farmland purchased part by %inheritance under business situations or Personal investment situation? rental income was reported form 4835 in past.

f you've filed Form 4835 in the past on the income from this land, then it needs to be reported as a sale of business property. 

To do that: 

  1. Go to your Business tab. 

  2. Click Continue

  3. Select I'll choose what I work on. 

  4. Click Start or Update by Farm Rental Income and Expenses. 

  5. Click by your farm name OR set it up. 

  6. On the Tell us about your farm page, check I sold or otherwise disposed of this farm during 2016.  

  7. Continue till you get back to Your Farming Income and Expenses

  8. Continue till you get back to Let's gather your business info

  9. Scroll down to Less Common Expenses

  10. Select Start or Update by Sale of Business Property

  11. Select Sales of business or rental property that you haven't already reported. 
    (This includes certain farmland, mineral, or conservation property.) on Any Property Sales? 

  12. On the Sales of Business or Rental Property page, enter the info from the sale. 

  13. Depending on your answers, you'll have a few follow up questions. 

  14. Click Continue till you get back to Farm Rental Income and Expenses

Your gain will be reported on line 13 of Form 1040. 

To check, 

  1. Go to My Account

  2. Go to Tools. 

  3. Go to View Tax Summary

  4. Go to Preview my 1040

View solution in original post

1 Reply
CherylW
Level 3

Should I enter sale of farmland purchased part by %inheritance under business situations or Personal investment situation? rental income was reported form 4835 in past.

f you've filed Form 4835 in the past on the income from this land, then it needs to be reported as a sale of business property. 

To do that: 

  1. Go to your Business tab. 

  2. Click Continue

  3. Select I'll choose what I work on. 

  4. Click Start or Update by Farm Rental Income and Expenses. 

  5. Click by your farm name OR set it up. 

  6. On the Tell us about your farm page, check I sold or otherwise disposed of this farm during 2016.  

  7. Continue till you get back to Your Farming Income and Expenses

  8. Continue till you get back to Let's gather your business info

  9. Scroll down to Less Common Expenses

  10. Select Start or Update by Sale of Business Property

  11. Select Sales of business or rental property that you haven't already reported. 
    (This includes certain farmland, mineral, or conservation property.) on Any Property Sales? 

  12. On the Sales of Business or Rental Property page, enter the info from the sale. 

  13. Depending on your answers, you'll have a few follow up questions. 

  14. Click Continue till you get back to Farm Rental Income and Expenses

Your gain will be reported on line 13 of Form 1040. 

To check, 

  1. Go to My Account

  2. Go to Tools. 

  3. Go to View Tax Summary

  4. Go to Preview my 1040

Dynamic AdsDynamic Ads
Privacy Settings
v