If I have farm rental income on Form 4835, can I use income averaging?

hschwertner — Tue, 04 Jun 2019 20:06:30 GMT

Possibly. If you're farm rental meets the following defi...

Vanessa — Tue, 04 Jun 2019 20:06:32 GMT

Possibly. If you're farm rental meets the following definition then you would be "considered to be engaged in Leasing land to a tenant engaged in a farming business, but only if the lease payments are

(a) based on a share of the tenant's production (not a fixed amount), and
(b) determined under a written agreement entered into before the tenant begins significant activities on the land."

https://www.irs.gov/pub/irs-pdf/i1040sj.pdf

If you meet the above qualifications then yes you would be able to use income averaging. If not, then you cannot use it.

topic If I have farm rental income on Form 4835, can I use income averaging? in Investors & landlords

If I have farm rental income on Form 4835, can I use income averaging?

Possibly. If you're farm rental meets the following defi...