I have a small farm that I claim as a "farm rental". With depreciation and 4 years of drought,I keep accumulating a loss that has never caught up to the income. In all previous years, the loss carried forward until 2017. In trying to complete a 2017 1040x, I tried using "Forms View" to manually enter the previous losses from 2016. TT then wanted an entry for Form 6198. I never filed a Form 6198 in the past. How do I correct this mess?
TT then wanted an entry for Form 6198. I never filed a Form 6198 in the past. How do I correct this mess?
You must have inadvertently indicated that you did not have any amount "at risk" (see link below).
Return to the section and check the box indicating your investment was at risk.
Sch E worksheet shows "Active participation" and "owned jointly" checked under "check all that apply". We do actively participate- we buy seed, pay for laser leveling, make all mgmt. decisions,own the land...we just don't actually "farm" the land. We split the profits on the crop with the farmer.
How do I get Form 8582 to bring over prior years unallowed losses?
Also, can't I just delete Form 6198?
We do file Form 4835 and line 34a is checked "all investment is at risk" and TT adds PAL in margin