Can I deduct travel expenses for checking on farm land in another state

[craigfd]

I receive an annual check from USDA for "CRP annual rental". I do not live in the state where the farm land is.  Can I deduct travel expenses to check on that property?

[DianeW · Accepted solution]

Yes.  If you are traveling to check on the farm and you receive rental income from the farm that you are reporting as farm income.

[craigfd]

I received an annual check from U.S Dept of Agriculture "CRP ANNUAL RENTAL" is on the Form CCC-1099-G form.    It is not an active farm. I drove there to see the land which I inherited a 20% share of.  Last year an accountant filed a schedule "F" and showed no expenses.  That's why I question if I can put in travel expenses this year.

[DianeW]

You should be allowed to deduct expenses because you are being paid, reporting taxable income, most likely being paid not to farm which is common.

[rbarl]

Where would I record this information?

[Cattlerancher]

A 1099-G that is reporting a CRP payment is required to be entered on schedule F. Note; Be sure to review the Ag Programs interview in the Farm Income section to see if SE tax applies. Expenses associated with this income, travel Real Estate taxes, etc., are expensed in the Farm Income and Expense section.