topic Trust farm rental in Business & farm

Trust farm rental

Farmgirl123 — Sat, 15 Feb 2025 11:25:40 GMT

If a trust had a strictly cash rental farm, would it ever have farming and fishing income on line 42 of the 1040E? Or would Farming and Fishing income on the 1040E line 42 be for crop share?
I guess im asking if a trust has farming and Fishing Income on line 42 of the Schedule E that goes to the K-1? And what form is used to calculate that Farming and fishing income on line 42 of the 1040E?

would it ever be schedule F or 4835?

Re: Trust farm rental

M-MTax — Sat, 15 Feb 2025 14:27:09 GMT

Strictly cash rental from a farm would be reported on Schedule E. There shouldn't be any figure on Line 42 unless the trust, itself, received a K-1.

Re: Trust farm rental

Farmgirl123 — Sat, 15 Feb 2025 17:46:40 GMT

Would a crop share rental go on 42?
how would the trust have farming and fishing income?

thank you!!

Re: Trust farm rental

PatriciaV — Sun, 16 Feb 2025 21:03:16 GMT

Please clarify if you are preparing a Form 1041 Trust return or working on your personal Form 1040 return.

Re: Trust farm rental

M-MTax — Sun, 16 Feb 2025 21:29:43 GMT

@Farmgirl123 wrote:
Would a crop share rental go on 42?

Line 42:

Gross farming and fishing income reported on Form 4835, line 7

Schedule K-1 (Form 1065), box 14, code B

Schedule K-1 (Form 1120-S), box 17, code AN

Schedule K-1 (Form 1041), box 14, code F.

Re: Trust farm rental

Farmgirl123 — Mon, 17 Feb 2025 10:00:19 GMT

But when you have in Box 14 on the k-1

14F reported

14E reported

14I reported

should not 14F also be reported on line 6 of the 1041 and K-1?

Should there not be a schedule F?

Thank you!!

Re: Trust farm rental

Farmgirl123 — Mon, 17 Feb 2025 10:01:00 GMT

Working on my 1040.

Thank you!!

Re: Trust farm rental

Farmgirl123 — Mon, 17 Feb 2025 10:02:30 GMT

When and why would a trust receive a K-1?

Thank you!!

Re: Trust farm rental

M-MTax — Mon, 17 Feb 2025 14:29:28 GMT

@Farmgirl123 wrote:
When and why would a trust receive a K-1?

A trust could very well be a member in an LLC or a shareholder in an S corporation (certain types of trusts).

Re: Trust farm rental

PatriciaV — Mon, 17 Feb 2025 14:30:40 GMT

A trust receives Schedule K-1 from an investment in a S-Corp or partnership.

Form 1041 Schedule K-1 Box 14 reports "Other Information," which should be explained in supplemental information provided with Schedule K-1. See the IRS Instructions for Schedule K-1 Box 14.

Code F. Gross farming and fishing income.

The amount of farming and fishing income is included in box 6. This income is separately stated to help determine if you are subject to a penalty for underpayment of estimated tax. Report the amount of gross farming and fishing income on Schedule E (Form 1040), Supplemental Income and Loss, line 42.

Code I provides information on Section 199A (QBI). Again, the supplemental information should help with how to report this on your personal return.

There is no Code E for Schedule K-1 from a Form 1041 return.

@Farmgirl123

Re: Trust farm rental

M-MTax — Mon, 17 Feb 2025 14:36:40 GMT

@PatriciaV wrote:
There is no Code E for Schedule K-1 from a Form 1041 return.

Line 14 (Code E) is Net Investment Income.

Re: Trust farm rental

PatriciaV — Mon, 17 Feb 2025 14:47:25 GMT

IRS Instructions for Form 1041 Schedule K-1 Box 14 doesn't list Code E, although it does appear on page 2 of the actual Schedule K-1. Thanks for the clarification, @M-MTax

Re: Trust farm rental

Farmgirl123 — Sun, 23 Feb 2025 13:47:00 GMT

I think k I am understanding like this, as a read. If a trust has a 1040F it gets reported directly on the

1041 and k-1.

If a trust has a 4835, it gets reported on the 1040E that then goes to the 1041 to the K-1.

both of those are reported on the k-1 in the end on line 6 and box 14?

thank you for all of your help!