Solved: Gifted grain, how do we report it as income?
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acprice37
New Member

Gifted grain, how do we report it as income?

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
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Accepted Solutions
MargaretL
Level 9

Gifted grain, how do we report it as income?

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...

View solution in original post

3 Replies
MargaretL
Level 9

Gifted grain, how do we report it as income?

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...

View solution in original post

acprice37
New Member

Gifted grain, how do we report it as income?

Cash was not the gift: "gifted grain"
MargaretL
Level 9

Gifted grain, how do we report it as income?

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.
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