1099-PATR Investment Property
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tkpatter
New Member

1099-PATR Investment Property

I received Form 1099-PATR for a distribution from a Cooperative.  This cooperative financed the mortgage on an investment property I purchased.  The property has a home that I rent out as well as 30 acres of land that I use for both capital gain (timber sales, etc) and personal use (hunting, ATV riding, etc).  My question is how do I report this income on my tax return?  If I report under the Dividend section would it be considered Total Ordinary Dividend, Qualified Dividend, Capital Gain distribution, or something else ?

9 Replies
Cynthiad66
Employee Tax Expert

1099-PATR Investment Property

 

 

To enter a 1099-PATR for farm or co-op dividends:

  1. Open (continue) your return in TurboTax.
  2. Inside TurboTax, search for 1099-PATR (be sure to include the dash) and then select the Jump to link in the search results.
  3. Follow the instructions to enter info about your farm.
  4. When you get to Your Farming Income and Expenses, you will enter your 1099-PATR info in Livestock, grain, produce, custom work, co-ops.

If your 1099-PATR isn't for farm or co-op dividends, it gets entered as general business income:

  1. Open (continue) your return in TurboTax.
  2. Inside TurboTax, search for business (schedule c) (use this exact phrase) and then select the Jump to link in the search results.
  3. When asked Did you have any self-employment income or expenses? answer Yes.
    1. If you'd previously entered self-employed income, you'll come to Your 2020 self-employed work summary. Select Add another line of work to enter information about your farm.
  4. Follow the instructions to enter info about your farm.
  5. When you get to Let's enter the income for your (type of farming) work, select Other self-employed income and Continue.
  6. Enter the information from your 1099-PATR on the Tell us about other self-employed income screen.

Most often, your Form 1099-PATR reports dividends associated with a farm or cooperative (co-op). You can also receive a 1099-PATR for other reasons (for example, a land bank mortgage or backup withholdings made on your behalf).

 

Tip: If the dividends in Box 1 of your 1099-PATR came from property purchased for personal use (or capital assets or depreciable property used in your business), you don't have to enter your 1099-PATR. Keep it with your tax records, though.

 

Where Do I Enter Form 1099PATR

zappohll
Level 2

1099-PATR Investment Property

I received a 1099-PATR for a farm.   The directions above don't tell me exactly where to enter all the information in to TurboTax. 

 

Specifically, on the 1099-PATR, there are amounts entered in:

Box 1:  Patronage Dividends

Box 3:  Per-unit retain allocations

Box 7:  Qualified Payments

Box 8:  Section 199A qualified Item

Box 13:  Specified Coop (checked)

 

Where can I enter the above information?  Is there a 1099-PATR in the Forms View (if so, I don't see it).

 

Thank you!

JamesG1
Expert Alumni

1099-PATR Investment Property

This will be entered under your farm income.

  • Go to the Search magnifying glass in the upper right hand corner of the screen.
  • Enter '1099-patr'.  Enter.
  • Click on 'jump to 1099-patr'.
  • Under Farm Income, click on Visit All.
  • Cycle through the screens until you see the screen Enter Income, scroll down to Income from cooperative distributions (usually reported on Form 1099-PATR)

 

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zappohll
Level 2

1099-PATR Investment Property

Hi @JamesG1 

I tried your recommendation below, and don't see anyplace to input the following 1099-PATR for a Farm.

 

The directions don't tell me exactly where to enter all the information in to TurboTax. 

 

Specifically, on the 1099-PATR form, there are amounts entered in:

Box 1:  Patronage Dividends

Box 3:  Per-unit retain allocations

Box 7:  Qualified Payments

Box 8:  Section 199A qualified Item

Box 13:  Specified Coop (checked)

 

Where can I enter the above information?  Is there a 1099-PATR in the Forms View (if so, I don't see it).

 

By comparison, for a 1099-DIV, TurboTax has an explicit form where data may be entered in TurboTax for each box.

 

Thank you!

DianeW777
Expert Alumni

1099-PATR Investment Property

The amounts from your Form 1099-PATR are entered in the Farm Income section under 'Income from cooperative distributions (usually reported on Form 1099-PATR)'. See image below. They are also entered on the Form 8895 worksheet using TurboTax CD/Download version.

 

Specifically, on the 1099-PATR form, there are amounts entered in:

Box 1:  Patronage Dividends - Include in Box labeled Total Income from Cooperative Distributions

Box 3:  Per-unit retain allocations -Include in Box labeled Total Income from Cooperative Distributions

Box 7:  Qualified Payments - DO NOT ENTER THIS AMOUNT 

Box 8:  Section 199A qualified Item - DO NOT ENTER THIS AMOUNT

Box 13:  Specified Coop (checked) - DO NOT ENTER THIS AMOUNT

  • Box 8 NoteShows items received and reported in boxes 1, 2, 3, and 5 that may qualify as qualified items from trades or businesses that are not a specified service trade or business (SSTB) for purposes of the section 199A(a) deduction.

For your entry add Boxes 1 & 3 together and enter this combined amount.  The Section 199A amount from Box 8, will be automated if you show a profit on the farm.  If not, and because each piece of income becomes a component for Section 199A (qualified business income deduction or QBID), then this amount should be entered separately using the steps below.

  • Select Forms (upper right in blue section) > Under Forms in My Return scroll to QBI Component Worksheet > Add the 1099-PATR income as shown in the image below.

mach_one
Returning Member

1099-PATR Investment Property

So based on your response to the OP you don't have to report the 1099-PATR but keep it for records?  I also bought property financed through a co-op (received a 1099-PATR from the co-op, I assume they are returning our interest paid on the loan) that I rent out the farmland to but do not have a farm.

zappohll
Level 2

1099-PATR Investment Property

Please read the information above DianneW777 carefully.  Some of the information is not reported, but other information is combined and reported.

 

"For your entry add Boxes 1 & 3 together and enter this combined amount. The Section 199A amount from Box 8, will be automated if you show a profit on the farm. If not, and because each piece of income becomes a component for Section 199A (qualified business income deduction or QBID), then this amount should be entered separately using the steps below."

mach_one
Returning Member

1099-PATR Investment Property

I don't own a farm or report earnings for farming, because I don't farm. So where do you enter this 1099-PATR if it's an investment property?

 

ColeenD3
Employee Tax Expert

1099-PATR Investment Property

@Mach1

Please see this answer from Cynthiad66.

 

To enter a 1099-PATR for farm or co-op dividends:

  1. Open (continue) your return in TurboTax.
  2. Inside TurboTax, search for 1099-PATR (be sure to include the dash) and then select the Jump to link in the search results.
  3. Follow the instructions to enter info about your farm.
  4. When you get to Your Farming Income and Expenses, you will enter your 1099-PATR info in Livestock, grain, produce, custom work, co-ops.

If your 1099-PATR isn't for farm or co-op dividends, it gets entered as general business income:

  1. Open (continue) your return in TurboTax.
  2. Inside TurboTax, search for business (schedule c) (use this exact phrase) and then select the Jump to link in the search results.
  3. When asked Did you have any self-employment income or expenses? answer Yes.
    1. If you'd previously entered self-employed income, you'll come to Your 2020 self-employed work summary. Select Add another line of work to enter information about your farm.
  4. Follow the instructions to enter info about your farm.
  5. When you get to Let's enter the income for your (type of farming) work, select Other self-employed income and Continue.
  6. Enter the information from your 1099-PATR on the Tell us about other self-employed income screen.

Most often, your Form 1099-PATR reports dividends associated with a farm or cooperative (co-op). You can also receive a 1099-PATR for other reasons (for example, a land bank mortgage or backup withholdings made on your behalf).

 

Tip: If the dividends in Box 1 of your 1099-PATR came from property purchased for personal use (or capital assets or depreciable property used in your business), you don't have to enter your 1099-PATR. Keep it with your tax records, though.

 

Where Do I Enter Form 1099PATR

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