Gifted grain, how do we report it as income?

[acprice37]

My wife received money from the sale of grain gifted by her father.  We did not receive any kind of 1099-* form, how do we enter it on our tax form?  The grain was from the previous year's crop

[MargaretL · Accepted solution]

Cash received as a gift is not considered as income and is not reported on your tax return. There is no entries for cash gift on your tax return. Had your wife received the grain, then sold it, she would then have to report the sale. Here is data entry for the sale of grain:

1. Federal Taxes
2. Wages & Income
3. Scroll down to Investment Income
4. Select Stocks, Mutual Funds, Bonds, Other - Answer No to the 1099-B question; the category is "Everything Else" follow the prompts

Please refer to the link below on the basis property received as a gift:

https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-an...

[acprice37]

Cash was not the gift: "gifted grain"

[MargaretL]

Thank you for the clarification, I have edited my answer to account for the data entry and details on basis on gifted property. I hope you will find it helpful.

[GP25]

I received a gift of grain from my dad; the grain was in another state (than where I live), so when I sold it, I receive a check from the grain elevator in that state. Do I report it on my resident state income tax return or do I report it on a return from the state it was sold in?

[DaveF1006]

To clarify, what state was the grain sold from because each state has their own tax code?

@GP25