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how to add a 1099 misc that is not from self employment and also does'nt go under other common income. My daughter purchases a cow to raise and sell at the county fair.

she purchases a cow and raided it and then sold at the county fair
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how to add a 1099 misc that is not from self employment and also does'nt go under other common income. My daughter purchases a cow to raise and sell at the county fair.

  1. Go to the Wages & Expenses section of your tax return
  2. Click Edit/Add for your form 1099-MISC
  3. Input the details of your 1099-MISC and click Continue
  4. Answer the questions and Continue until you get to the Does one of these uncommon situations apply? page
  5. Choose This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common) and click Continue
Cynthiad66
Expert Alumni

how to add a 1099 misc that is not from self employment and also does'nt go under other common income. My daughter purchases a cow to raise and sell at the county fair.

The income from the sale of market livestock is ordinary income reported on Schedule F (Profit or Loss from Farming). Ordinary income tax rates will apply and the income is subject to self-employment tax.

 

By entering the 1099 on the Schedule F you will be able to deduct expenses for raising the cow which could possibly be more than the income.  No loss allowed if that is the only Farm income, but can deduct expenses up to income.

 

However, if this is just a one time thing or hobby, it will most likely be treated as a hobby.  Under the Internal Revenue Code § 183, if an activity is not engaged in for profit, no deduction attributable to such activity shall be allowed, except as provided.

 

Livestock Sales - Understanding the Impact

Instructions of Schedule F

 

In TurboTax Self-employed, type Farm Income in the search box in the top right click on the Jump to link. You will be able to enter income and expenses that will be placed on Schedule F. 

 

@haleyamurphy2004

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