1099-MISC from the State of MN for Sustainable Forest Incentive Act

[rp241]

I received a 1099-MISC from the State of MN for Sustainable Forest Incentive Act. How do I report expenses related to this program?

[AmyC]

The 1099-MISC is for you to keep your land undeveloped. Can you explain / clarify what expenses you want to deduct?

[rp241]

As part of the program, I must have a Land Management plan which requires work such as creating clear-cuts, planting trees, etc. to promote the growth and health of the forested areas.  I don't live on the property, so I do travel expenses to the parcel, have to buy supplies to do the work, purchasing seedlings and of course property taxes.

[rp241]

AmyC - any additional guidance on this?  Thanks.

[RobertB4444]

I would create a schedule F for this.  Schedule F is for a farm or ranch and I know this isn't really that but you are being paid a government subsidy to work your land and you have expenses related to it so it is appropriate.

Scroll down the 'Wages and Income' section of your federal return and click 'start' next to farm income.  Enter information about the property and when it asks if you received a 1099-G enter 'yes' and the information from that.  Then find the proper code for conservation and enter your expenses.

@rp241